Fixed Indexed Annuity

When an annuity’s capital appreciation potential is tied to the performance of an index, it is referred to as a fixed indexed annuity (FIA). Fixed indexed annuities are also commonly referred to as equity index annuities (EIA) or simply indexed annuities (IA). Generally, the annuity’s losses are limited while a portion of its gains are tied to the individual equity index’s returns. Some common indexes include the S&P, DIJA and the NASDAQ. With a fixed indexed annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a variable rate although there is a guaranteed minimum rate of return that provides a floor, and; 3) payments begin at a future date and are at a fixed rate that is based on market performance and is supported by the guaranteed minimum rate.

Sheryl Moore on Fixed Indexed Annuities and the SEC Proposed Rule 151A

The Securities and Exchange Commission’s (SEC) proposed Rule 151A would change the securities status of indexed annuities from fixed insurance products to registered, securities products.

The proposed rule would have a significant impact on their entire industry landscape.  SEC 151A would affect the way in which insurance companies develop fixed...

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Record Sales in Fixed Indexed Annuity Market

Total sales of fixed indexed annuities reached $8.3 billion during the second quarter of 2009. This represents an increase of 18.3% from the previous quarter and an increase of 21.2% from the same period a year ago. The sales momentum comes despite industry headwinds which include fewer insurance companies and fewer product offerings. Aviva was the top insurance company in the space with a 20% market share while the top selling indexed annuity product was the MasterDex X from Allianz . Source:...
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Ordinary Investors Can Outsource their Hedging and Derivatives Management through Annuities

Concerned about the possibility of another market swoon?

Take a look at some of the...

An Interview with Wharton Professor David Babbel - Part One

This is the first part of an interview with Wharton Professor David Babbel.

Professor Babbel led the fixed...

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