Equity Indexed Annuity
The Equity Indexed Annuity (EIA) is a fixed insurance product that provides the potential for higher returns than other fixed investments, without risk to principal. Growth is linked to an external equity index such as the S&P 500 Index or the Dow Jones Industrial Average Index. Thus, the investor can effectively participate in stock market gains when the index goes up but cannot lose principal when the market goes down.More information
The following web-sites provide additional information on how EIAs work as well as the features of different EIA products:
http://www.annuityadvantage.com/equityindexed.htm
http://www.mostchoice.com/annuity_annuities_faqs.html
http://www.american-equity.com/main/products/equityindexed.asp
http://www.fpanet.org/journal/articles/2004_Issues/jfp0104-art8.cfm