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Insurance Definition: EQUITY INDEXED ANNUITY

By Compuquotes Team on March 27th, 2008

EQUITY INDEXED ANNUITY:

Definition:

  • Non-traditional 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.

Information provided by Insurance Information Institute

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