In addition to the information discussed in this Buyer's Guide about surrender and withdrawal charges and free withdrawals, there are additional considerations for equity-indexed annuities. Some annuities credit none of the index-linked interest or only part of it if you take out money before the end of the term. The percentage that is vested, or credited, generally increases as the term comes closer to its end and is always 100% at the end of the term.
ARE DIVIDENDS INCLUDED IN THE INDEX?
Depending on the index used, stock dividends may or may not be included in the index's value. For example, the S&P 500 is a Stock price index and only considers the prices of stocks. It does not recognize any dividends paid on those stocks.
