Fixed Annuity Definition, Fixed Indexed Annuities, Lifetime Income Annuity
WHAT ARE INDEXED ANNUITIES? FREE QUOTE
An indexed annuity is a fixed annuity, either immediate or
deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. The value of the index might be tied to a stock or other equity index. One
of the most commonly used indices is the S&P 500, which is an equity index. The value of any index varies from day to day and is not predictable. When you buy an indexed fixed annuity you own an insurance contract. You are not buying shares of any stock or equity index. 1:35 min. video ===>>> Live Help: 800-286-1812 <<=== HOW ARE THEY DIFFERENT FROM OTHER FIXED ANNUITIES? FREE GUIDE An indexed fixed annuity is different from other fixed annuities because of the way it credits interest to your annuity's value. Some fixed annuities only credit interest calculated at a rate set in the contract. Other fixed annuities also credit interest at rates
set from time to time by the insurance company. Indexed
Annuities credit interest using a formula based on changes
in the index to which the fixed annuity is linked. The formula
decides how the additional interest, if any, is calculated and
credited. How much additional interest you get and when
you get it depends on the features of your particular fixed annuity.
Questions You Should Ask The Agent. Pros and cons.
NAIC National Association of Insurance Commissioners Guide. |