What happens in an equity-indexed annuity if the index decreases every year or remains flat for the entire term? A) The annuity owner usually receives the contract value, which is usually equal to 90% of premiums paid plus 3% interest compounded annually. B) The annuity owner will always be able to receive 100% of their premiums back at any time. C) The annuity owner will lose all accumulated principal and interest. D) The annuity owner always receives the lesser of the current account value or contract value (less any surrender charges).
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g., S&P 500) but typically includes a floor/guarantee so negative index returns do not reduce the principal; there are often fees or an initial premium allocation that reduce the amount actually placed in the indexed account. Show more…
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