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An indexed annuity (the word equity previously tied to indexed annuities has been removed to help prevent the assumption of stock market investing being present in these products) in the United States is a type of tax-deferred annuity whose credited interest is linked to an equity index—typically the S&P 500 or international index.
A deferred annuity that permits allocations to stock or bond funds and for which the account value is not guaranteed to stay above the initial amount invested is called a variable annuity (VA). A new category of deferred annuity, called the fixed indexed annuity (FIA) emerged in 1995 (originally called an Equity-Indexed Annuity). [5]
What Is an Index Annuity? Index annuities–also known as indexed annuities–are a hybrid investment and insurance product that offers investment returns based on a market index, such as the S&P 500.
Equity Indexed. An equity-indexed annuity is a combination of both fixed and variable, which ties its interest rate to the stock market index's performance. If the market has an up year, you’ll ...
The main risk with a variable annuity is that you could lose money. Indexed. In an indexed annuity, your return is based on changes in a market index, such as the S&P 500 Composite Stock Price ...
WEST DES MOINES, Iowa--(BUSINESS WIRE)-- American Equity Investment Life Holding Company (NYS: AEL) ("American Equity" or the "Company"), a leading underwriter of index and fixed rate annuities ...
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