What Is An Equity Indexed Annuity

Their return varies more than a fixed annuity but not as much as a variable annuity.

What is an equity indexed annuity. HOW ARE THEY DIFFERENT FROM OTHER FIXED ANNUITIES. Indexed annuities also known as fixed indexed annuities or equity indexed annuities are meant to provide a reliable stream of income throughout an annuitants life. An index annuity is the same thing as a fixed index annuity.

An equity-indexed annuity is a combination of a fixed and a variable annuity. What makes this variety unique is that it offers a minimum guaranteed interest rate plus an interest rate thats linked to a market index. An indexed annuity also known as a fixed-index annuity is a type of annuity whose income payments are tied to a stock index such as the SP 500.

Indexed annuities sometimes referred to as equity-indexed annuities are much more complex than fixed annuities. The marketing pitch usually goes something like this. An index annuity is an annuity whose rate of return is based on a market index such as the SP 500 or the Nasdaq 100.

An equity indexed annuity is an annuity that is tied to an equity and has an interest rate that fluctuates with the performance of that equity. They can be purchased through an issuing insurance company in exchange for a one-time lump sum or periodic premium payments. Annuity companies use a.

Indexed annuities are sometimes referred to as equity-indexed or fixed-indexed annuities If you are interested in learning more or have any questions call us. EIAs have characteristics of both fixed and variable annuities. A guaranteed interest rate determines roughly 90 of the returns while the performance of the index determines the rest.

Many life insurance companies offer equity indexed annuities as an alternative to standard annuities. An equity-indexed annuity is an annuity product in which the principal you put in is invested in a stock market index like the SP 500. Key Takeaways An indexed annuity pays a rate of interest based on a.