Is the Nassau Protection Choice Annuity Any Good?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Our Nassau Protection Choice Annuity Review

The Nassau Protection Choice annuity is a fixed-indexed annuity that provides a conservative investment option for individuals seeking safety and potential returns. Designed for investors who prioritize safety and security, this annuity offers gains linked to a positive change in a market index, providing upside potential without any downside risk. Comparable to other safe investments like bonds and bank CDs, the Nassau Protection Choice annuity prioritizes principal protection while offering growth potential.

However, it’s important to understand the terms and conditions associated with this annuity. Early withdrawals may incur surrender charges and market value adjustment fees. Nassau Life, the issuer of the annuity, has the authority to change the terms, such as participation rates and crediting rates, which could affect the annuity’s performance. While some annuities offer bonuses, evaluating the trade-offs and potential impact on returns is crucial.

Consider the Nassau Protection Choice annuity’s worst-case and best-case performance scenarios to fully assess it. Understanding the calculation of returns, including the presence of caps, spreads, or participation rates, is essential in making an informed decision. It’s important to approach custom or proprietary indexes cautiously, as established indexes are more reliable.

Requesting an annuity quote and comparing it to other top products on the market can provide a clearer picture of the Nassau Protection Choice annuity’s benefits and suitability for your financial planning goals.

Key Takeaways:

  • The Nassau Protection Choice annuity offers a fixed indexed option for investors prioritizing safety and potential returns.
  • Gains are linked to a positive change in a market index, providing upside potential without downside risk.
  • Consider surrender charges and market value adjustment fees associated with early withdrawals.
  • Understand the potential impact of changes in terms and conditions by the issuer.
  • Assess the worst-case and best-case scenarios of the annuity’s performance.
Nassau Protection Choice Annuity

Features and Benefits of the Nassau Protection Choice Annuity

The Nassau Protection Choice annuity offers many features and benefits to meet specific retirement needs. Whether you’re looking for guaranteed lifetime income, protection options, market participation, or tax-deferred growth, this annuity covers you.

Guaranteed Lifetime Income: With optional riders, the Nassau Protection Choice annuity allows you to secure a stream of income for life. These riders enhance your income potential and are customized based on factors such as age, exercise of the rider, and benefit type.

Protection Options: The annuity also provides protection options that can be tailored to suit your individual needs. Whether you’re concerned about long-term care or providing for your family, the Nassau Protection Choice annuity offers flexibility and peace of mind.

Market Participation: One key feature of the Nassau Protection Choice annuity is its ability to participate in market growth. This means you have the potential to accumulate additional retirement savings through market-linked gains.

Tax-Deferred Growth: Another advantage of this annuity is its tax-deferred growth. By deferring taxes on your earnings, you can maximize the compounding power of your investment and potentially grow your savings faster.

Flexibility: The Nassau Protection Choice annuity provides flexibility regarding contributions over time. You can adjust your investment strategy to align with your changing financial goals and circumstances.

Additional Advantages: Besides the above benefits, the Nassau Protection Choice annuity offers other advantages, such as the avoidance of probate and potential creditor protection.

It’s important to note that income riders may have associated fees, which could reduce the principal balance. However, the allocation accounts and selection of indexes, including the CS Tactical Multi-Asset Index Spread and the S&P 500, make the Nassau Protection Choice annuity an attractive option for individuals seeking guaranteed income, protection, and potential market participation.

Nassau Investments Reviews

Nassau Life and Annuity Company Overview

Nassau Life and Annuity Company is a reputable insurance provider established in 2015 with an investment from Golden Gate Capital. Through its subsidiary divisions, Nassau Life has a rich history dating back to 1851. It is known for its commitment to service, integrity, and dedication.

As of December 31, 2018, Nassau Life had over 486,000 policies and contracts in force, demonstrating its extensive experience in the insurance industry. In addition to insurance services, the company is also actively involved in reinsurance and asset management through its affiliates.

One of Nassau Life’s notable strengths is its expertise in managing policies from other life insurance companies. This showcases the company’s reliability and knowledge in the industry, making it a trusted choice for customers seeking annuities and other insurance products.

When evaluating annuities, it is crucial to consider the reputation and financial stability of the insurance provider. With its solid track record and diverse range of offerings, Nassau Life and Annuity Company is well-positioned as a trustworthy and deserving contender.

Nassau Annuities

What We Like

  • Upside Potential: Nassau’s Personal Protection Choice fixed indexed annuity stands out for its appealing option to pay for higher upside potential. This feature is particularly attractive for those looking to maximize their investment returns.
  • Diverse Riders: The variety of riders available, including those for income, long-term care, and death benefits, adds significant flexibility and customization to their offerings.
  • Return of Premium Feature: Including a Return of Premium feature enhances the value proposition of this annuity, offering a reassuring safety net for investors.

What We Don’t Like

  • Limited Availability: A major drawback is that the annuity is only available in a few states, restricting its accessibility to a broader audience.
  • Subpar Credit Rating: Nassau’s B++ rating with A.M. Best, which is considered relatively low in the industry, raises concerns about its financial stability. The fluctuating nature of this rating over the past decade further adds to these apprehensions.
  • Long History, Moderate Achievement: Despite being in operation since 1851, Nassau’s inability to reach or exceed the A- rating with A.M. Best is disappointing, given its extensive history in the industry.

Our Recommendations

Given the analysis, while Nassau’s Personal Protection Choice offers some attractive features, their limited state availability and lower credit rating are significant drawbacks. For those seeking robust financial products, exploring other insurance companies with better ratings might be a more prudent choice. These companies are likely to offer similar, if not better, options and come with a stronger assurance of stability and reliability. It’s crucial to weigh the benefits of Nassau’s offerings against the peace of mind that comes with a higher-rated insurer.

Nassau Pc Annuity

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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