04 Jun What are equity index annuities?
An indexed annuity is a contract issued and guaranteed by an insurance company. You invest an amount of money (premium) in return for protection against down markets, the potential for some investment growth, which is linked to an index (e.g., the S&P 500®), and in some cases a guaranteed level of lifetime income through optional riders.
An investor gets to participate in the upside of the index without any downside investment risk. These also have income riders that can guarantee a certain level of income to the policy holder. This is a great tool to use if your goal is income planning.
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