Buyers Guide to Equity Annexed Annuities

This is an easy to understand Web site to with information to understand annuities in general and equity indexed annuities in particular. There are different kinds of annuities..

An annuity is a series of income payments made at regular intervals by an insurance company in return for a premium or premiums you have paid. The most frequent use of income payments from an annuity is for retirement.

An equity-indexed annuity is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. The value of the index might be tied to a stock or other equity index. The value of any index varies from day to day and is not predictable. Your equity-indexed annuity, like other fixed annuities, also promises to pay a minimum interest rate. The rate that will be applied will not be less than this minimum guaranteed rate even if the index-linked interest rate is lower. The value of your equity annexed annuity also will not drop below a guaranteed minimum.

Make sure you understand what equity annexed annuities are and if it's the right investment product for you. (IDF)