An indexed annuity is an annuity that earns interest that is linked to a stock or other equity index. One of the most commonly used indices is the Standard & Poor’s 500 Composite Stock Price Index (S&P 500).
Indexed annuities credit interest using a formula based on changes in the index to which the annuity is linked. The formula decides how the additional interest, if any, is calculated and credited. The amount credited to the indexed annuity depends on the features of the particular annuity.
Indexed annuities, like other fixed annuities, guarantees 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 annuity also will not drop below a guaranteed minimum. The insurance company will adjust the value of the annuity at the end of each term to reflect any index increases.
The index annuities in the table below are a snapshot of the most competitive index annuities available in the annuity marketplace today.
INDEX ANNUITIES for the MONTH of OCTOBER 2010
COMPANYBONUS PARTICIPATION CREDITING METHOD PERIOD ING - 100% Annual Point-to-Point 9 yr Request Information ING - 100% Annual Point-to-Point 5 yr Request Information
