Indexed Annuities: What Are They?

An indexed annuity is a fixed annuity that earns interest or provides benefits linked to an external reference or an index. The value of the index might be tied to a stock or other index. One of the most commonly used indices is Standard & Poor’s Composite Stock Price Index (the S&P 500). The value of any index varies from day to day and is not predictable. When you buy an indexed annuity, you own an insurance contract rather than shares of stock or index. More >>