That is one way to look at it. However, the product is based on the base amount deposited. Using my 100K, it has 2 features.

The first is a 3 year program that bumps the base by 30% year 1, 37.5% year 2 and 45% year 3. This means if a person decides to annuitize (take a monthly income) in year 2 the bump would be 37.5%. This gives him/her a new base rate for annuitization purposes. That new rate would be $137,500.

The second feature is a 10 year feature. The annuitant (owner) of the policy receives simple interest bump of 14% per year for 10 years growing his annuitization base to $214K at the end of year 10. This person would receive a monthly check based on the 214K or a little over twice the amount he/she would have received had he/she annuitized the 100K.

There are other aspects involved in the annuity. For example, there is a no fee clause until a person begins to annuitize. If he/she bought the guaranteed life income rider the charge for that rider occurs at the time of annuitization. If they withdrew their funds prior to either the 3 year or 10 year program there would be an early withdrawal penalty depending on their age.

This product is clearly designed for a person like the person I mentioned. He wanted his $$$ to receive as much guaranteed interest as possible for the next 3 years at which time he was gonna turn on the income valve. The "bump" feature of this product is guaranteed so it met his criteria.

Obviously I've given you a long winded answer. However, I don't know how else to explain the product so I don't violate any laws since I am licensed.

Annuities are generally a long term hold type of investment. My wife has 2 that she will annuitize when she reaches 70 (longevity reigns in her family). That gives one more income stream for her "golden" years. This is by design. She simply sits and waits while they grow at a guaranteed rate. Then, bingo, she turns on the income valve.

I've already annuitized one for myself. The extra income stream fits in nicely as it pays those non stop pain in the ass bills that show their ugly head every month. That means I don't have to dip into my other income streams. Nice.

Is it for everybody? I don't know as I don't know everybody. Hope I at least touched on an answer that satisfies your question.