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  2. An indexed annuity is a type of annuity contract that pays an interest rate based on the performance of a specified market index, such as the S&P 500. It differs from fixed annuities, which pay a fixed rate of interest, and variable annuities, which base their interest rate on a portfolio of securities chosen by the annuity owner.
    www.investopedia.com/terms/i/indexedannuity.asp
    www.investopedia.com/terms/i/indexedannuity.asp
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  3. People also ask
    What is an index annuity?An index annuity is an annuity whose rate of return is based on a stock market index, such as the S&P 500. Unlike most variable annuities, an indexed annuity sets limits on your potential gains and losses, so these annuity contracts are less risky than investing directly in the market but also have less upside. How Does an Index Annuity Work?
    What indices are used for indexed annuities?In theory, an indexed annuity can be linked to any market index. Most indexed annuities, however, are linked to the S&P 500 index. The Nasdaq 100 is also commonly used for such products, and to a lesser extent the Russell indices. Indexed annuities promise higher interest than fixed annuities and less risk than variable ones.
    How do indexed annuities work?The interest that indexed annuities earn is usually credited at the end of the annuity’s term, which typically ranges from three to 15 years. You can customize your annuity contract by selecting the index on which to base your annuity’s interest. The most common index options include the S&P 500, the Nasdaq 100 and the Russell 2000.
    How are indexed annuities calculated?The rate on an indexed annuity is calculated based on the year-over-year gain in the index or its average monthly gain over a 12-month period. While indexed annuities are linked to the performance of a specific index, the annuitant won't necessarily reap the full benefit of any rise in that index.
     
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  5. WebOct 5, 2020 · How indexed annuities credit interest. In exchange for downside market protection, you’ll usually receive less than 100% of the …

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