What is Fixed Index Annuities?
Fixed index annuity is nothing but one kind of insurance. Annuity means a fixed amount of money or allowance paid you yearly. Fixed index annuity is a special type of annuity where the interests are paid on the basis of one or more major stock index.
Fixed index annuity is nothing but one kind of insurance. Annuity means a fixed amount of money or allowance paid you yearly. Fixed index annuity is a special type of annuity where the interests are paid on the basis of one or more major stock index. A great feature of this type of annuity is that the principal and interests are never at risk of falling value. The investment only goes down if the person takes money out or chooses one of the many different added benefits which might be available. Equity index annuity and bonus annuity are the other name of fixed index annuity. There are three types of annuity namely traditional fixed, index annuity and variable annuity. Among them fixed and variable are major.
Difference between Fixed and Variable Index Annuities
There are huge differences between fixed and variable index annuities. Variable annuities are mutual fund like investment and directly invest to the market. If the market goes upward than your account will gain profit and will earn more. It is not free from market fluctuation. On the other hand fixed annuities are based on market but not directly related to market. The interest is paid out at certain intervals with certain rate no matter what market does. It is free from market fluctuation.
Benefits of annuities
The benefits of fixed index annuities are shortly described below
Disadvantages of Fixed Index Annuity
Fixed index annuity has some problems too. You must get a clear concept about them.
You have already got the idea about Fixed Index Annuity! Now you know what is perfect for you or not. Choose your financial service carefully. Never make any mistake to choose the best coverage for you. If you make mistake you can suffer in the long run! Be happy with the best financial protection coverage.
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ABOUT THE AUTHOR
Hi friends, this is Sourav. Mainstreetnaples is a leading insurance company.You can make your best insurance policy with them. They have various kinds of policy for you e.g. house, auto, boat, disability as well as life insurance and personal insurance.For more information visit this site about fixed index annuity and choose the right insurance policy for you.