Definition - What does Index Annuity mean?
An index annuity is an annuity that is tied to an equity index such as the S&P 500. These types of annuities offer annuitants the opportunity to increase their returns if their index performs well. Many insurance companies offer index annuities to their customers.
Insuranceopedia explains Index Annuity
Index annuities can be subject to the performance of the stock market. This can give the impression that they are considerably riskier than other types of annuities. However, many index annuities come with protections against stock market declines, which can help mitigate the risk for annuitants. Index annuities are often a good option for people who are interested in a certain index and who are looking to earn more money from their annuities.
How Well Do You Know Your Life Insurance?
The more you know about life insurance, the better prepared you are to find the best coverage for you.
Whether you're just starting to look into life insurance coverage or you've carried a policy for years, there's always something to learn.