Equity Index Annuities are a new class of annuities that provides participation in the Standard & Poor's 500 stock index with a no-loss provision.  It's not a security, as you might suspect, but is categorized as a single-premium traditional annuity.  Take a look below at how an Equity Index Annuity can help you with your financial goals.

A No-Loss Provision-The most-attractive provision to people looking into an equity index annuity  is the no-loss provision. Meaning that once a premium payment has been made or interest has been credited to the account, the account value will never decrease below that amount. This provides safety-net against any volatility of the S&P 500.

Guaranteed Interest- Another benefit that appeals to many people is that of guaranteed interest. Most of the policies have a cap (the maximum interest rate that can be credited to a policy in a policy year) and a floor (the minimum interest rate that can be credited in a policy year). The cap rate can vary from no cap to a fixed percentage, but the floor is generally 3%. This allows the policyholder to benefit from potentially high returns and be guaranteed at the same time that their money will at least gain 3% over the term of the policy.
With concerns over inflation and making sure that investments will meet our future needs, many people have turned to the equity market for higher returns. It makes sense when you consider how well the S&P 500 index has performed historically.

Click here - To learn more about how an Index annuity can benefit your financial goals.