In a fixed annuity the insurer is guaranteed a minimum rate of return on deposited principal for a specified period of time. This minimum percentage guarantee changes at calendar points as described in the contract.
Returns in a fixed annuity, while guaranteed, can tend to produce returns over long periods of time that may not keep pace with inflation.
Let us guide youThe equity-index annuity is a hybrid between the guaranteed fixed and the non-guaranteed variable annuity products. Equity-indexed annuities are different from other annuities because of the way interest is credited to the annuity’s value. Fixed annuities generally only credit interest calculated at a rate as set forth in the contract.
Equity -indexed annuities credit interest that incorporates a formula based on changes in the index to which the annuity investment returns is linked.
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