Equity Indexed Annuities

An equity indexed annuity is an investment vehicle that earns interest based on a rate linked to an external equity reference or equity index. It can be either an immediate or deferred annuity. The equity indexed annuity may be tied to the value of a stock, for example, or a mutual fund like the popular S&P 500, which is based on the 500 companies believed to indicate the overall health of the market. The value of an equity indexed annuity will vary from day to day, and is not predictable.

While fixed annuities credit interest to your account based on a pre-determined rate, equity indexed annuities credit payments using a formula based on changes to the index to which it is linked. How much additional interest you get and when you get it will depend entirely on the features of your particular annuity, but should always provide a minimum return, generally of about three percent.

Link to the Market without Risk
Fixed equity index annuities are a great choice for people who want a market-linked annuity without the risk the market presents. These annuities can never lose money. Your investment is safe and protected. If the market rises sharply, you stand to make a healthy profit. However, even if the market fall precipitously, you won't make any money, but you won't lose any, either.

Equity indexed annuities are a good way to make a profit in the long-term. If the market happens to be down for the entire term of your annuity, most people still generate a minimum return of 1.5 to 3 percent. At AnnuitySearch.com, we understand how important your money is, and want to find you the best annuity for your needs, be it equity indexed or other. Every person's financial picture is unique, and we fully believe that the best annuity on the market is the one that works for you.