indexed annuity
An indexed annuity is an annuity whose growth is tied to a market index like the S and P 500, but with limits on how much you can gain or lose. It sits between a fixed annuity and a variable one.
A definition says what a thing is; it never says whether it fits you. The guides explain how it works and name the professional who confirms it for a particular person. The No Advice Disclosure.
Words beside it
- Annuity
A contract with an insurer that pays you a stream of income; simple ones are cheap, complex ones often are not.
- deferred annuity
An annuity contract where the insurance company holds your money and begins sending you regular payments at a future date you choose, rather than right away.
- fixed annuity
A fixed annuity is an annuity where the insurance company promises your money will grow at a set interest rate. It is the simplest kind because the rate does not change with the market.
- immediate annuity
An annuity contract where the insurance company begins sending you regular payments right away, rather than waiting years to start.
- variable annuity
A variable annuity is an annuity where your money goes into investment choices that can rise or fall in value like a stock fund. Your payments depend on how those investments do.
Ask about indexed annuity
A model reads this page and answers from it. It will say when the answer is not on the page. Education, not personalized advice.