equity-indexed annuity

(redirected from Equity Indexed Annuity)
Also found in: Acronyms.

Equity-Indexed Annuity

An annuity with an interest rate linked to the performance of an equity index. Most annuities pay the interest rate stated in the contract, but an equity-indexed annuity pays a minimum interest rate, with the possibility of a higher rate depending on the performance of the relevant stock or equity index. Each plan uses a different methodology in determining how the higher interest rate is calculated. Common features in its calculation include a participation rate, which determines how much of the annuity is linked to the index, and the rate cap, which sets a maximum interest rate on some plans. Many equity-index annuities use the Standard & Poor's 500 Composite Stock Price Index (S&P 500) as their benchmark.

equity-indexed annuity

A contract with an insurance company that promises periodic payments keyed in a specified manner to a stock market index. Unlike variable annuities, equity-indexed annuities specify a guaranteed minimum return that is typically 3%. These contracts may also specify an upper limit (cap) on the return that is paid. Indexing methods vary, and surrender charges often apply to early withdrawals.
References in periodicals archive ?
However, it was also among the first equity indexed annuity products on the market in 1995, so we enhanced the product with several new features that we think will capture the attention of customers who are concerned about the current interest rate environment and possible future losses, yet still want to participate in the gains of the S&P 500.
To meet the needs of those individuals, Lincoln Benefit Life, an Allstate Company, has enhanced its popular equity indexed annuity offering, the Saver's Index(R) Annuity series, with new competitive features.
17 /PRNewswire/ -- Fidelity & Guaranty Life introduces their Equity Indexed Annuity Rewards Series(R), featuring two initial products in the series: Loyalty Rewards and Index Rewards.
Our Equity Indexed Annuity has been in production for two years with solid sales growth," said Dave Bergstrom, Vice President of Customer Solutions and Operations for The Mutual Group.
Keyport Life Insurance Company, with almost $16 billion in assets, is a leading provider of fixed, variable and equity indexed annuity products.
Keyport Life Insurance Company, with $14 billion in assets, is a leading provider of fixed, variable and equity indexed annuity products.
Allianz Life Insurance Company of North America (Allianz Life) today announced record equity indexed annuity (EIA) premiums of $762 million in the second quarter, highest among all U.
Conseco's insurance subsidiaries continue to operate their fixed annuity and equity indexed annuity businesses, which in 2001 accounted for more than $1.