If you’re looking for safer financial instruments than the stock market gamble, a fixed index annuity may be of interest. Fixed index annuities allow you to keep hard-earned money protected while enjoying tax-deferred, equity index-linked asset growth potential.
Before purchasing an annuity, it’s important to know the fundamentals. Here are some helpful annuity basics to cover.
What is an Annuity?
An annuity is a contract between a policyholder and an insurance company. You make premium payments. In exchange, the insurer provides certain contractual guarantees. These guarantees cover a variety of contract components, including income, interest rates, or withdrawals. Premium payments may be a one-time lump sum or a series of payments over time.