Fixed Indexed Annuities

Fixed Indexed Annuities - Growth Potential Based on a Market Index

A fixed index annuity gives you more risk – but more potential return than a fixed annuity – but less risk and less potential return than a variable annuity. It is also known as an equity indexed annuity.

As its name implies, its value is linked to a market index, such as the S&P 500 Composite Stock Price Index*, a collection of 500 stocks intended to represent a broad segment of the market.

Designed for retirement saving

Like other types of annuities – fixed or variable, immediate or deferred – indexed annuities are long-term vehicles designed to help you save for retirement.

Keep in mind that if you take your money out early, you may have to pay surrender charges and, if you’re younger than 59½, an additional 10% tax penalty. Naturally, if you take an early withdrawal, your death benefit and the cash value of the annuity contract will be reduced.

Fixed index annuity features

Fixed Indexed Annuities

How account interest is determined

While sales of indexed annuities have grown in recent years, some of their features can be difficult to understand, such as the various methods for calculating the interest.

Some common methods include:

Other factors can influence indexed annuity values

Indexed annuity values are influenced by:

NFW-3311AO.1, NFW-3525AO

Share Article