Equity Indexed Annuity (EIA)
Definition
A fixed annuity whose interest is determined, at least in part, by the performance of a market index such as the S&P 500 over a stated period. In a poor period the owner may be credited zero interest, but with most designs the premiums are protected from a decline in the index. It keeps an annuity’s tax deferral, death benefit and annuitization options.
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