Are Indexed Annuities Insured?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Indexed Annuities Overview

Indexed annuities are a type of insurance-based contract. They are not directly invested in the stock market. Instead, they track the performance of a market index (like the S&P 500) and use this as a basis to determine the interest credited to the annuity.

Insurance of Indexed Annuities

  • By the Insurance Company: Indexed annuities are primarily insured by the issuing insurance company. This means the safety of your investment in an indexed annuity depends on the insurance company’s financial strength and claims-paying ability.
  • Additional Protection: Some regions have a State Guaranty Association (SGA) or a similar entity providing an additional protection layer. This association can offer limited protection to annuity owners in case the insurance company fails. The extent of this coverage varies by state and type of contract.
Index Annuities Insured

Risk and Return Balance

Conclusion

Indexed annuities offer a balance of risk and return, providing a level of insurance against market downturns while allowing for potential gains based on market performance. They are insured by the issuing insurance company, with additional protection varying by state. Understanding the terms and conditions, as well as the financial strength of the insurer, is crucial. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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