An Index Annuity is a type of fixed annuity that earns interest rate based on a specified equity index, such as the [Dow Jones Industrial Average](https://www.djindexes.com dow.jones.index_data) or the [(S & P 500)](https://www.spglobal.com sp.index_info). Unlike traditional fixed annuities where the interest rate is declared by the insurance company, index annuities have a performance that linked directly to the performance of a benchmark stock index.
Key Features:
- Tied to an Equity Index: The return on an index annuity is connected to the performance of a specified stock index. This makes the annuity’s performance subject to market risks and rewarding apart from interest rates offered by other traditional annuity products.
- Safety of Principal: Key attraction of an index annuity is its protection of the principal. Despite its link to market figures, most index annuities guarantee the principal investment amount, akin to insurance against market downturns.
Referring US legal framework and regulations, Slate locations Group of Indexed Annuity policy agreements are conducted under the guidelines outlined by the [Insurance Regulators Guidelines of Annuity Representation](https://www.naic.org], which assures fairness, compliance, and accuracy in presentation and sales practices. Read these to understand the legal expectations and your rights as an investor.
Consumer Advisory:
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