Since interest is based on an index, isn't this similar to a variable annuity
No, if a variable annuity account goes down, you could lose principal. Index annuity principal is protected from market risk - you can't lose principal if the index declines. Variable annuity gains are not locked in. Once index-linked interest is credited in an index annuity it can not be lost, even if the index declines substantially. Variable annuities also include reinvested dividends but neither the index nor index annuities reflect reinvested dividends.
For a free consultation please click below and fill out the form. There is NO obligation.
