Equity Indexed Annuity

Equity Indexed Annuity

An equity indexed annuity is an annuity that, when purchased, yields return on invested assets based on a specified equity index. Examples of equity indexes include S&P 500, NASDAQ 100, and DJIA.

To credit interest, equity indexed annuities use a method based on fluctuations in the index that the annuity is linked to. This formula decides how to calculate and credit additional interest, if any exists. They also assure a minimum interest rate and protect against loss of the principal investment.

One Comment

  1. Impaired Life Annuity on April 9, 2013

    Its a nice post but could it be bit longer. Will you please share some annuity formulas.

    Reply

Leave a Comment

Your email address will not be published. Required fields are marked *

*