What Is An Indexed Annuity

It gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity.

What is an indexed annuity. It is one type of annuity contract between an investor and an insurance company. An indexed annuity earns a percentage of the return on the index. A Fixed Index Annuity is a tax-favored accumulation product issued by an insurance company.

Unlike most variable annuities an indexed annuity sets limits on your. An indexed annuity as the name suggests is an annuity that provides an investment return linked to a stock market index. Many annuity contracts apply the guaranteed interest rate to only a.

A fixed index or equity index annuity will grow based on an external index performances positive performance. An indexed annuity is a contract issued and guaranteed by an insurance company. 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.

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. You invest an amount of money in return for protection against down markets with the potential for investment growth linked to an index. Indexed annuities are fixed annuities protected from downside markets with upside limited not assured.

An indexed annuity is a kind of variable rate annuity. An annuity is a contract whereby an investor makes a lump-sum payment to an insurance company bank or other financial institution that. Instead of rising and falling line with a portfolio of different kinds of assets though an index annuity tracks a particular index.

Annuities require you to pay money in a lump sum today or in several payments over time. They can be purchased through an issuing insurance company in exchange for a one-time lump sum or periodic premium payments. Premiums allocated to one of the Index Strategies will receive interest calculated.