Index Annuity

Comprehensive index annuity information and index annuity rates from over 40 different annuity insurance companies.

An Index Annuity is a great place to protect the money you've saved in your CDs, money market accounts, IRA accounts, etc. Or perhaps as an alternative for the money you currently have invested in stocks and mutual funds. An Index Annuity can greatly improve your earnings potential, while at the same time keep your principal safe from market fluctuation.

With an index annuity, your return is tied to the increase in one of several stock market indexes, such as the S&P 500. However, if the stock market goes down, you do not lose any of your money. In fact, most index annuities even GUARANTEE you a minimum interest rates (typically 1-3%), even if the index your annuity is aligned with goes down the entire time you own the policy.

If you would like to research and compare actual index annuity product offerings from a number of top-rated insurance companies, please visit our Index Annuity Data page.

As stated above, an Index Annuity offers the potential of higher returns without exposing principal to market risk. In exchange for this no downside risk guarantee, index annuity policyholders must generally be willing to give up some of their upside market potential. This is what makes these newer index annuity products so attractive to retired persons and to those approaching retirement. In exchange for having their retirement assets fully protected from loss (in fact, a minimum interest rate is guaranteed) an index annuity owner "shares" in market gains, but may not receive 100% of the increase. For most individual investors who have recently seen the value of their investment portfolios fluctuate dramatically, this constitutes a prudent and desirable compromise.

For individuals who do not want to take any downside risk, an index annuity is one of the best options currently available.