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equity-indexed annuity

   Also found in: Wikipedia 0.07 sec.
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.


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has launched Conseco Command, a single-premium equity-indexed annuity that provides predetermined "free-out" windows for owners to access funds without surrender charges.
NWL's net premium growth in recent years has been primarily driven by its equity-indexed annuity (EIA) segment.
During two historic, long and lackluster stock-market periods, the right kind of equity-indexed annuity would have outperformed the Dow Jones Industrial Average, including reinvested dividends, according to Pete Winer, a chartered financial consultant with Covenant Reliance Producers LLC, Nashville, Tenn.
 
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