An equity-indexed annuity has some of the benefits of both a fixed annuityand a variable annuity . The marketing pitch usually goes something like this: Equity-indexed annuities give you the best of both worlds.
Guaranteed Return As with a fixed annuity, you get the low-risk appeal of a guaranteed minimum return.
Market Upside Return But, as with an equity indexed annuity, you also have a shot at higher gains if the stock market rises, since an equity indexed annuity's return is also tied to the performance of a benchmark index, such as the Standard & Poor's 500.
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