How does an equity indexed annuity compare to a variable annuity?
Apples and oranges. You may often see comparisons of equity indexed annuities to variable annuities, or even mutual funds, but they are quite different. Keep in mind that equity indexed annuities are fixed annuities (there are some variable on the market, however), so to compare them to variable products or securities would not be a fair assessment. Fixed indexed annuities include minimum guarantees and are intended for the conservative investor that is seeking returns that could possibly outperform regular or traditional fixed annuities.
