EIAs generally have many of the same product features you expect to find in a traditional fixed annuity: minimum guaranteed cash value, free withdrawals, multiple retirement income options, surrender charges and probate free death benefits. EIAs are available as a single premium and flexible premium products and can be used in qualified and non-qualified markets.

The key difference between EIAs and Traditional Annuities is in the manner in which current crediting rate is determined. There are several design variations available, generally:

• Earnings are credited at defined points in time. The amount of interest credited is tied to increases in the index that occurs between those defined points in tome. This period is called the “index credit period”.
• If the index declines or is level, there is no decline in the annuity account value. Principal and prior earnings are locked in and are guaranteed never to decline due to market drops.
• There is an underlying guaranteed minimum in the contract value. At the end of the surrender period, whichever amount is greater between the minimum guaranty and the principal growing with the index; that amount is your total return. Rarely, if ever, will you receive the minimum contractual value.
• The owner participates in a percentage of the increases of the index and never in the decline.