Would A Large Stock Market Loss Ruin Your Retirement Plans?

Is it time to prepare for the next bear market?

With an Index Frontier℠ variable-indexed annuity, you can take advantage of potential market growth, while receiving a level of protection if the market declines.

Let’s say you purchased an Index Frontier annuity with $100,000. You decided to allocate your entire purchase payment to an indexed strategy that provides returns based on changes in the S&P 500® Index. The strategy offered a maximum gain of 11% and a maximum loss of -10% each term. The example illustrates how your annuity provides some built-in protection from market declines.

variable-indexed annuity market timeline

This example assumes no withdrawals are taken from the annuity. Maximum loss guarantees are subject to the claims-paying ability of Great American Life.

Cumulative Values
S&P 500 Investment Index Frontier Annuity
2001 $90,131 $90,131
2002 $70,825 $81,118
2003 $86,077 $90,041
2004 $94,458 $98,807
2005 $99,595 $104,181
2006 $112,555 $115,641
2007 $115,448 $118,613
2008 $70,202 $106,752
2009 $87,169 $118,495
2010 $98,603 $131,529
2011 $98,146 $130,919
2012 $114,149 $145,321
2013 $143,770 $161,306
2014 $163,721 $179,050
2015 $158,574 $173,420
2016 $179,543 $192,497
2017 $211,841 $213,671
This example assumes no withdrawals are taken from the annuity. Maximum loss guarantees are subject to the claims-paying ability of Great American Life.

Don’t let stock market losses ruin your retirement plans. Because an Index Frontier variable-indexed annuity offers protection from large losses, you can enjoy the peace of mind that comes with knowing how much of your money is exposed to downside risk.

When the market experiences large losses, an Index Frontier annuity never loses more than 10%. On the other hand, after years like 2001, 2002 and 2008, it took several years for the S&P 500 investment to break even.

As you can see, steadier returns gave the Index Frontier the opportunity to outperform the S&P 500 investment over time.

Talk to your financial professional to learn more about how an Index Frontier variable-indexed annuity can provide competitive growth potential and limit your downside risk.



Index Frontier annuities can only be sold through a Broker/Dealer that is contracted with Great American Life Insurance Company. Obtain a prospectus here.

Great American Life Insurance Company is not an investment adviser and the information provided is not investment advice. You should consult your investment professional for advice based on your personal circumstances and financial situation. This information is not intended or written to be used as legal or tax advice. It was written solely to support the sale of annuity products. You should seek advice on legal or tax questions based on your particular circumstances from an independent attorney or tax advisor.

This example is a hypothetical illustration of mathematical principles related to the downside protection provided by a growth strategy under an Index Frontier annuity. Maximum loss guarantees are subject to the claims-paying ability of Great American Life. Historical performance for the Index Frontier annuity, which was first offered in March 2018, is not available. Under the best circumstances in an increasing market, you would be credited the maximum gain for each term. Under the worst circumstances in a decreasing market, you would be credited the maximum loss for each term. This means you could lose 10% each term.

This illustration is not intended to predict or project the performance of any investment or investment strategy. Past performance is no guarantee of future results. You cannot invest directly in an index.

The S&P 500® values in the graph are based on historical performance of the S&P 500 index, excluding dividends paid on the stocks included in the index. The Index Frontier values are based on hypothetical performance of the growth strategy for one-year terms ending on December 20. For purposes of this example, we assume $100,000 is allocated to an S&P 500 growth strategy with an 11% maximum gain, which is current as of September 18, 2018, and a 10% maximum loss. A different set of assumptions would lead to different results, which could be significantly different from the strategy returns shown in this example. Index Frontier annuities offer strategies that calculate gains and losses based on two other indexes, the SPDR Gold Shares exchange-traded fund and the iShares U.S. Real Estate exchange-traded fund. Hypothetical values for those strategies could be higher or lower than those shown in this example. Maximum gains are set at the start of each term and are subject to change. The returns in the graph are calculated using the same hypothetical maximum gains for each term. It is likely that the maximum gain for an indexed strategy will vary from term to term. Before the end of a term, any increase in a strategy value is limited by both the maximum gain and a vesting factor. The maximum loss for a strategy will not change.

Terms start on the 6th and 20th of each month. Hypothetical strategy values for terms ended on a date other than December 20 could be higher or lower than those shown in this example. This example assumes no withdrawals are taken from the annuity. Early withdrawal charges will apply if money is withdrawn during the early withdrawal charge period. Any withdrawal will reduce contract values. In addition, a withdrawal before the end of a term may have a positive or negative impact on the strategy value at the end of the term, which may be significant.

When you buy a variable-indexed annuity, you own an insurance contract. You are not buying shares of any stock or index. For purposes of this example, the investment in the stocks that make up the S&P 500 index is assumed to be an IRA so that the dividends, gains and losses over the period of comparison are tax-deferred. For most stock investments outside of a retirement plan, dividends are subject to income tax at capital gains rates when paid, and long term capital gains are subject to income tax at capital gains rates when the stock is sold. For annuity contracts, income earned on the contract is subject to income tax as ordinary income when withdrawn. If you are under age 59½, the taxable amount may also be subject to a 10% federal penalty tax. Generally income tax rates on ordinary income are higher than capital gains tax rates on long-term capital gains and qualified dividend income.

The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Great American Life Insurance Company®. Standard & Poor's®, S&P®, S&P 500®, SPDR® and STANDARD & POOR'S DEPOSITORY RECEIPTS® are trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Great American Life. Index Frontier annuities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties makes any representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

Principal Underwriter/Distributor: Great American Advisors, Inc., member FINRA and an affiliate of Great American Life Insurance Company. Products issued by Great American Life Insurance Company®, member of Great American Insurance Group (Cincinnati, Ohio) under contract forms P1822217NW and P1822317NW. Contract form numbers may vary by state. Products and features may vary by state, and may not be available in all states.

All guarantees subject to the claims-paying ability of Great American Life.