Some annuities have "riders" and other provisions that can meet future needs. Many riders have separate costs attached to them, which the client must understand before purchasing a contract. Riders and provisions vary widely among insurance companies, but typically they include:

• Life Insurance Riders: These riders pay a death benefit if the owner dies from an accidental death usually before the age of 65.
• Long-Term Care Benefits Riders: If the owner is confined to a licensed nursing home for more than 60 days beginning after the first year of the annuity, no surrender charges will be deducted from the account value upon a full or partial surrender.
• Loan Provisions: A provision in certain indexed annuities that allows holders to borrow up to a specified percentage of the contract's value. Contract loans are usually subject to taxes; however, loan provisions are not offered by all insurance companies selling indexed annuities.

  Example: One company's indexed annuity contract describes its available loan provision this way – "Up to 50 percent of the Cash Surrender Value ($50,000 maximum). Loans are not available with IRA or some other tax-qualified plans."

The difference in index annuities is in the details of how the index calculation is made, how the issuers count gains as well as the related features and benefits. There are substantial variations between company designs; and no two products are alike. Indeed, many are substantially different.

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