An Equity Indexed Annuity is a type of Fixed Annuity.
Equity Indexed Annuities offer the potential of higher returns than fixed rate annuities without being exposed to market risk. In exchange for this guarantee of no downside exposure, Equity Indexed Annuities policy holders must give up a portion of their upside market potential. This is what makes these newer annuity contracts so much more attractive to retired persons and to those approaching retirement than the annuities of old.
In exchange for having their retirement assets fully protected from loss an equity indexed annuity owner shares in the market gain while also being offered a guaranteed minimum interest rate. For most individual investors who have recently been hit by the volatility of the market, these contracts allow for a desirable trade-off and stable peace of mind.
In an Equity Indexed Annuity your investment is not directly invested in stocks or indices. Your contract will simply follow the performance trends of that index and your account will be credited based on the crediting method or methods you choose. For Live Help please call (916) 857-0997 or Please fill out my form.
