Equity Indexed Annuities
- designed for investors seeking zero risk of principal loss
- fixed annuities with guaranteed principal - no risk of market losses
- potential to earn higher interest than fixed-interest, guaranteed options, based on a calculation linked to the performance of an equity index, such as the S&P 500
- maximum annual interest is limited by a specified cap or spread
- no interest is paid in years when the index value calculation is negative
- no annual contract or investment fees
- riders may be available to guarantee lifetime income, regardless of the amount of interest earned
- surrender charges and/or market value adjustments may apply to withdrawals for a specified number of years after contract issue
- annuity contracts usually allow a portion of the contract value (typically 5%-10%) to be withdrawn each year, without surrender charges
- annuities are issued by life insurance companies, and are not guaranteed by FDIC insurance. Annuity guaranteed values are backed by the claims-paying capacity of the issuing insurer (click here for links to information about insurer safety).
- state insurance guarantee associations may provide protection in the event that an individual insurer is unable to fully honor their contractual obligations to an annuitant (click here for more information).
Click here for more information about Voya Fixed Index Annuities