What's What in the Financial Services Industry
Definition: as defined by the Securities and Exchange Commission, an equity-indexed annuity is a special type of contract between you and an insurance company. During the accumulation period – when you make either a lump sum payment or a series of payments – the insurance company credits you with a return that is based on changes in an equity index, such as the S&P 500 Composite Stock Price Index. The insurance company typically guarantees a minimum return. Guaranteed minimum return rates vary. After the accumulation period, the insurance company will make periodic payments to you under the terms of your contract, unless you choose to receive your contract value in a lump sum
Regulated by: equity-indexed annuities are considered insurance products on both the federal and state level, therefore they must be registered with the Indiana Department of Insurance.
- Search the database to check licensing and registration of financial services professionals (Indiana Securities Division)
- Understanding professional designations (Financial Industry Regulatory Authority)
- Learn more about financial institutions (Indiana Department of Financial Institutions)