01.Core Concepts

An equity-indexed annuity is a fixed, deferred annuity that allows the owner to participate in the growth of the stock market and provides downside protection against the loss of principal and prior interest earnings if the annuity is held to term The participation rate is the percent of increase in the stock index that is credited to the contract Some insurers have a maximum cap rate on the interest rate credited to your annuity Insurers use different indexing methods to credit excess interest to the annuity Some have a guaranteed minimum value at the end of the index period ‹#›