Annuities Explained | Fixed Index Annuity Annual Point To Point

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Annuities Explained: How Index Annuity Annual Point-to-Point Works
The index linked interest, if any, is based on the difference between the index value at the end of the term and the index value at the start of the term. Interest is added to your annuity at the end of the term.
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An equity-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 Standard & Poor's 500 Composite Stock Price Index (the S&P 500)1, which is an equity index. The value of any index varies from day to day and is not predictable.

When you buy an equity-indexed annuity you own an insurance contract. You are not buying shares of any stock or index.

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Jeff McLeod
National Insurance Producer License #558629
Arkansas Insurance Producer License #558629
McLeod Agency, Inc. Arkansas Insurance License #1651277