Definition of "Equity-Indexed Annuity"

A variation of the fixed annuity. With this type of annuity, your money accumulates tax-deferred at a minimum fixed rate of return. Your account also may earn additional interest based on the performance of an equity index. Generally, the indices used are widely reported common-stock indices, the most prevalent being the Standard & Poor's® 500 Composite Stock Price Index.

A variation of the fixed annuity. With this type of annuity, your account accumulates at a minimum fixed rate of return. Your account also may earn additional interest based on the performance of an equity index. Generally, the indices used are widely reported common stock indices, the most prevalent being the Standard & Poor?s 500 Composite Stock Price Index.