What Is Fixed Indexed Annuities?

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   David RacichPRO

   Fountain Hills, Arizona

   Fixed Indexed Annuities are tax deferred annuities that feature domestic and foreign indices with three crediting methods: rate spreads, rate caps and participation rates. Interestingly enough, these three methodologies appear to coalesce after ten years. Indexed annuities never credit less than zero, but keep in mind that annual policy expenses are still deducted from the premium, so there could be a loss in any one year during the surrender period.
    

   Answered on June 10, 2013

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