RILA Vocabulary Lesson

Barbara Treadwell provides an essential vocabulary lesson for understanding RILAs (Registered Index Linked Annuities). This educational overview explains the key terms investors need to know when reading rate sheets and evaluating these products. Barbara breaks down how indexes, caps, buffers, participation rates, and other features work together to balance market-linked growth with downside protection.

Topics covered:

• What an indexed annuity is and how indexes work (S&P 500, Russell, MSCI, Nasdaq)
• Term lengths available (1-year, 3-year, and 6-year options)
• Cap: How high your returns can go
• Buffer: Downside protection against market loss
• The relationship between caps and buffers
• Participation rate and six-year term bonuses
• The trigger feature and how it protects against lackluster market years
• Dual return (performance) feature
• Riders: Guaranteed lifetime income and income doubler
• Activities of Daily Living (ADLs) and long-term care benefits
• How to read RILA rate sheets

This content is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making investment decisions.

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