Equity-indexed annuities: the new tax-deferred annuity.

From: Healthcare Financial Management | Date: December 1, 1997| Author: Kistner, William G. | Copyright information

Investors are clamoring for Equity-indexed annuity (EIA) products in line with their desire to benefit from potentially high stock market returns while lessening the risk linked with a market low. The three ways to calculate an EIA's return are the annual reset method, which compounds or totals yearly gains during the index term using the outcome to solve the annuity return, and the point-to-point method, which utilizes net price difference of the index from the purchase date to the date the ...

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