A lower maximum premium for indexed annuity contracts, that are owned by Trusts or Corporations. Why?

May 8, 2025 by Sheryl J. Moore

I have a client that has a question, which I cannot answer. Can you help?

“We have seen that some companies have a lower maximum premium for indexed annuity contracts, that are owned by Trusts or Corporations.

Our observation is that most indexed annuities have a max premium of $2 million or $3 million.

However, when the contract is owned by a Trust or Corporation , then the max premium is $1 million.

Do you have any idea why companies do this?”

I personally do not definitively know the answer; do you? -sjm  

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