• 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 Standard & Poor's 500 Composite
  Stock Price Index  (the S& P 500), 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 or index.

  While immediate equity-indexed annuities may be
  available, this appendix will focus on deferred
  equity-indexed annuities.

  Jeff McLeod
  HappyRetiree.com
  1-800-286-1812

  December 22nd, 2004 at 9:10 am

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