An indexed annuity is a fixed annuity, either immediate or
deferred, that earns interest or provides benefits that are linked
to an external equity reference or an equity index. The value of
the index might be tied to a stock or other equity index. One
of the most commonly used indices is the S&P 500, which is
an equity index. The value of any index varies from day to day
and is not predictable.
When you buy an indexed annuity you own an insurance
contract. You are not buying shares of any stock or index.
