Registered Index-Linked Annuities

designed for investors willing to accept limited risk of principal loss
may offer higher annual maximum interest potential than Equity Indexed Annuities in exchange for exposure to some degree of potential downside risk
depending on the contract, potential annual losses may be limited to a stated maximum percentage, or some percentage of the total decrease in the index may be covered by the annuity company, with the remainder charged to the contract value
may be free of annual contract or investment fees
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annuity contracts usually allow a portion of the contract value (typically 5%-10%) to be withdrawn each year, without surrender charges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 ratings).
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 about guarantees).