A fixed indexed annuity is a type of annuity contract between you and an insurance company. It generally promises to provide returns that are based on a link to the performance of a market index. You usually make one initial lump sum payment to the insurance company. That payment is then allocated to one or more indexed investment options that you select. The insurance company then credits your account with a return that is based on those indexed investment options’ returns. If the indexed investment option declines due to market losses, you are never credited with the losses, which means your principal never declines even if the market does. Call us if you have any questions, we’re always here to help.
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