Understanding Annuities: Why Choose an Indexed Annuity?

An indexed annuity provides the opportunity to benefit from potential gains in the equity markets, while paying a stated minimum interest rate during market downturns. An indexed annuity is a compromise between a fixed interest annuity and a variable annuity. The return on an indexed annuity varies more than a fixed interest annuity, but not as much as a variable annuity. As a result, an indexed annuity has more risk and more potential return than a fixed interest annuity, but less risk and less potential return than a variable annuity.

An indexed annuity may be right for you if you want to participate in the potential gains from the equity markets, while limiting your potential losses during market downturns. As a result, indexed annuities may be best suited for individuals who:
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Does it sound like a Fixed Indexed Annuity might be right for you?

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