Keyport Life Insurance Co. has introduced an equity indexed annuity designed to minimize volatility risks. The Keyport Index Multipoint annuity, a single-premium deferred product, guarantees a return of principal and 55% of the highest monthly average of the Standard & Poor's 500 during the product's term of one, five, or seven years.
The product's predecessor, Keyport's KeyIndex, introduced in 1995, had calculated return based on the S&P's performance on the anniversary of the annuity's purchase. Using an average for each month provides 12 potential high-water marks and lessens the investor risks from market swings. A minimum investment is $5,000.