Why do variable annuities have a prospectus & indexed annuities don’t?
There are over 15 different types of annuities on the annuity planet. The top 2 types that represent over 75% of total annual annuity sales are variable annuities and fixed index annuities (aka: indexed annuities). By the way, there are over $200 billion of annuities sold in the United States every year, so three quarters of that number is a big chunk.
The reason that variable and indexed annuities are the sales leaders is due to the fact that there is a growth portion within the annuity structure with the ability to add riders (attached benefits to the policy) for separate guaranteed calculations that solve for things like income for life, confinement care coverage, or a guaranteed death benefit. In other words, variable and indexed annuities are too often and unfortunately sold as one size fits all.