Tag Archives: market index

An index is a number that goes up and down as the market it represents changes. When looking to purchase a fixed indexed annuity, your agent will talk to you about how interest is credited. A fixed indexed annuity allows you to benefit from the positive changes in the index (subject to the policy’s caps) while being protected if the index falls. A fixed indexed annuity may credit more interest than a traditional fixed annuity in periods when the index is rising. When the index is falling or remains level, the value of the fixed indexed annuity remains constant. In other words, an indexed annuity allows the policy owner to potentially receive more interest than a traditional fixed annuity, but without being subject to market risk. Continue reading →