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Indexed Annuities

An indexed annuity is a fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. One of the most commonly used indices is the S&P 500.

Most indexed annuity contracts offer a provision of a guaranteed minimum return so even if the stock index does poorly, the annuitant will have some rate of return on their investment and their downside risk limited.

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