All indexed annuities have a floor of zero meaning the absolute worst case scenario due to a downturn in the market index is a consumer might receive no interest in a particular year however he or she cannot lose any previously credited interest or premiums. By tracking a popular index owners of index annuities can participate in general market changes while being able to easily track ups and downs in the annuity s value. Indexed annuities give buyers an opportunity to benefit when the financial markets perform well.
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