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An equity 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 Standard & Poors 500 Composite Stock Price Index, which is an equity index. The value of any index varies from day to day and is not predictable. When you buy an equity indexed annuity you own an insurance contract. You are not buying shares of any stock index.
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FAQ's that should be asked to your insurance agent, account executive or company prior to considering the purchase, exchange or sale of a deferred annuity.
There are a series of basic questions that you should ask your agent or company when considering deferred annuities. This list is not designed to be complete in all material respects. It is being provided as a general guide. Thus, it should not be relied upon as legal or investment advice.
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