The stock market has been bouncy lately.
On November 5, the VIX, a popular measure of market fear, jumped about 70% in one day.
At the same time, interest rates are high, with the 10-year Treasury above 5%.
So clients are asking a fair question: “What in my plan does not move?”
“Guaranteed” does not mean “never changes.” Every product guarantees something different. Some numbers are promised in the contract. Others are just what the company pays today, and they can change later.
Your job is to help clients tell the two apart.
Fixed annuities and MYGAs
A fixed annuity works a lot like a bank CD. The company promises a set interest rate for a set number of years. Lots of people want that right now. LIMRA reports that fixed annuity sales jumped 26% from the first to the second quarter of 2026.
The catch is leaving early. If a client pulls out too much money before the term ends, they can pay a surrender charge. Some contracts also have a market value adjustment, or MVA. If rates went up after the client bought, the MVA can shrink the payout even more. If rates went down, it can help.
Also remember that swapping an old annuity for a new one (a 1035 exchange) avoids taxes, but it does not erase the old surrender charge and it usually starts a new surrender period.
Index products
Fixed indexed annuities and indexed universal life usually have a 0% floor. That means a client will not lose money because the market fell. But there is also a cap, which is the most they can earn in a year. The cap is not locked in for life.
Here is why it can shrink. When the market gets jumpy, it costs the company more to protect the client from losses. That can push caps down. Higher interest rates help in the other direction. So always check the guaranteed minimum cap in the contract, not just today’s number.
Indexed universal life sales dipped 11% in the second quarter of 2026, the first drop since 2023.
Whole life
Whole life has guaranteed cash value and a guaranteed death benefit. Dividends are different. While they are not a guarantee, they have a very steady historic payout history. For 2025, MassMutual declared 6.60%, Guardian 6.25%, and Northwestern Mutual 5.75%. Dividend rates have moved a lot over the years, so show clients three views: the guaranteed numbers, today’s numbers, and today’s numbers minus one point.
What to tell clients
Match each dollar to when it will be needed. Separate what the contract promises from what the company pays today. Look at the whole picture before moving anything, including fees, charges, and the rating of the company.
When clients want options, run quotes in Quote&Apply and start the eApplication when they are ready.
After that, BOSS helps you track the case and your commissions in one place.
This article is for education only and is not individual advice. Use carrier-approved materials, check suitability, and follow your state’s rules. Figures were reviewed on November 13, 2026 and can change.