What is the Definition of Equity Indexed Annuity?

What is the Definition of Equity Indexed Annuity?

Nontraditional fixed annuity. The specified rate of interest guarantees a fixed minimum rate of interest like traditional fixed annuities. At the same time, additional interest may be credited to policy values based upon positive changes, if any, in an established index such as the S&P 500. The amount of additional interest depends upon the particular design of the policy. They are sold by licensed insurance agents and regulated by state insurance departments.

Source: Insurance Handbook A guide to insurance: what it does and how it works | https://www.iii.org/

Label: Insurance
Theme: Dictionary of Insurance Terms

Other Questions: What is the definition of Annuity?

What is the Definition of Equity Indexed Annuity?

What is the Definition of Equity Indexed Annuity?

You can find random definition and meaning of insurance terms below:


Meaning of Surplus in Insurance Terms

The remainder after an insurer’s liabilities are subtracted from its assets. The financial cushion that protects policyholders in case of unexpectedly high claims. (See Capital; Risk-based capital)


Meaning of Term Certain Annuity in Insurance Terms

A form of annuity that pays out over a fixed period rather than when the annuitant dies.


Meaning of Vandalism in Insurance Terms

The malicious and often random destruction or spoilage of another person’s property.


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