How are they different from other fixed annuities

A Fixed-Indexed Annuity is different from other fixed annuity contracts because of the way it credits interest to your annuity's value. Some fixed annuities only credit interest calculated at a rate set in the contract. Fixed-indexed annuities credit interest using a formula based on changes in the index to which the annuity is linked. The formula decides how the additional interest, if any, is calculated and credited; how much additional interest you get and when you get it depends on the features of your particular annuity. The Fixed-Indexed Annuity, like other fixed annuities, also promise to pay a minimum interest rate. The rate that will be applied will not be less than this minimum guaranteed rate even if the indexed-linked interest rate is lower. The value of your annuity also will not drop below a guaranteed minimum. For example, many single premium contracts guarantee the minimum value will never be less than 90 percent of the premium paid, plus at least 3% in annual interest (less any partial withdrawals). The minimum guaranteed value is the minimum amount available at the end of the term.


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