Categories: Investor Definitions

INDEXED ANNUITIES

An indexed annuity is a type of annuity contract between you and an insurance company. It generally promises to provide returns linked to the performance of a market index. There are two phases to an annuity contract – the accumulation (savings) phase and the annuity (payout) phase.

During the accumulation phase, you make either a lump sum payment or a series of payments to the insurance company. You can allocate these payments to one or more indexed investment options. The insurance company credits your account with a return that is based on the indexed investment option’s return. During the annuity phase, the insurance company makes periodic payments to you. Or, you can choose to receive your contract value in one lump sum.

Depending on the circumstances, an indexed annuity may or may not be a security. If an indexed annuity is a security, it is regulated by the SEC.  All indexed annuities are also subject to state insurance regulation. If an indexed annuity is not a security, it will not be regulated by the SEC, but would still be subject to state insurance laws.

Learn more.

SEC

Share
Published by
SEC

Recent Posts

GVWR Class List

Federal Highway Administration GVWR Class Identification Find your vehicle's GVWR by decoding the vin. Class…

3 years ago

China CMIIT ID

China CMIIT ID is required for all wireless devices (cellular phones, modems, routers, etc.) imported…

3 years ago

Singapore Radio Type Approval (IMDA)

Singapore Radio Type Approval (IMDA) is a technical specification and compliance process for radio communications…

3 years ago

Waioder Meaning

Waioder Definition is not a meaningful term in any of the languages, and it isn't…

4 years ago

MNPI – Acronym Meaning

MNPI stands for Material Non-Public Information. Material information is accurate information that is not commonly…

4 years ago

Alien

US law defines “the alien” as “anyone who is not a US citizen,” and in…

4 years ago