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Equity-Indexed Annuities

Equity-Indexed Annuities

An annuity is an insurance product that’s part of a wise retirement plan, providing a steady stream of income for the policyholder. An annuity can be a truly great tool for many people in various stages of retirement, provided it has been thoroughly researched ahead of time. Curious about the various types of annuities
available? We’ve got some helpful information about equity-indexed annuities and how they might be the right choice for your retirement plan.

What is an equity-indexed annuity?

An equity-indexed annuity is an investment contract with an insurance company which provides a financial safeguard during retirement. An equity-indexed annuity is essentially a hybrid of a fixed and variable annuity. Following an accumulation period when premiums are paid and interest is accrued, equity-indexed annuities provide the policyholder payouts at regular intervals. In addition, equity-indexed annuities are largely based on the performance of an equities index, such as the S&P 500.

What are the advantages of investing in an equity-indexed annuity?

  • Provides protection against outliving your money in retirement
  • Reap the benefits of a thriving stock market
  • Guaranteed minimum return if stock market prices fall
  • May pay a higher return than a standard fixed annuity but with less risk than a variable annuity

What are the disadvantages of investing in an equity-indexed annuity?

  • Very complex and may be difficult for an investor to understand
  • Does not necessarily give the entire return of the market index
  • If money is withdrawn from the annuity early, there may be hefty surrender charges

At Insurance Hub, our knowledgeable agents and advisors are ready and waiting to assist with all your insurance needs. Furthermore, Insurance Hub is dedicated and committed to always putting the client first. Whether you’re looking for an equity-indexed annuity or any other type of insurance plan, Insurance Hub has just what you’re
looking for. For more information regarding equity-indexed annuities as well as other insurance coverage, visit Insurance Hub’s website today at www.insurancehubusa.com.

FL Fixed Index | Sarasota Annuities