What is an Equity-Indexed Annuity?

An equity-indexed annuity allows you to benefit from potential gains when the stock market is up, but also prevents you from being penalized when it's down.

So even if the stock market were to decline in value, your contract value can never decline. In addition, like all fixed annuities, you're protected by a lifetime guaranteed minimum interest rate.

Easy to buy
Gains are tied to the S&P 500 index, locked in annually, with no risk to principal

Save money at tax time
Earnings grow on a tax-deferred basis until you withdraw your money.

Earn a paycheck for life
When you're ready to retire, withdraw money as needed or turn the value into a regular income stream for life.

How the annual account value is determined using point-to-point

• The index value on the current anniversary is compared to the index value on the prior anniversary.
• The index change is determined by subtracting the prior anniversary's index value from the current anniversary's index value and then dividing it by the prior anniversary's index value.
• If the results in a positive index change and is not more than the cap (the minimum cap varies on company), it is applied as index interest.

How the annual account value is determined using monthly averaging

• The index average, calculated at the end of the current year, is determined by averaging the index values, on a monthly basis, over the current year.
• The index average on the current anniversary is compared to the index value on the prior anniversary.
• The index average change is determined by subtracting the prior anniversary's index value form the index average and the dividing it by the prior anniversary's index value.
• If this result in a positive index change and is not more than the cap (the minimum cap varies on company), it is applied as index interest
• If the index change is negative, a zero percent credit is applied. If the index change is greater than the cap, the current cap rate is credited to the account value. The cap is set at the beginning of each contract year and is guaranteed for on year.