An Equity Index (also known as a Fixed Index annuity) is an insured investment that ties your interest rate to the growth of a major stock market index, like the S&P 500. As the S&P 500 rises, the insurance company credits your account with gains, minus the cut it takes for itself. When the S&P 500 falls, the insurance company protects your principle against losses with a low but positive interest rate. This type of annuity has become increasingly popular as it offers the safety of a fixed annuity and growth potential of market based gains.

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