Annuties-What You May Know & What You May Not Know...

Now, a variation of a fixed annuity is what they call a fixed index. So instead of putting 5 % in your annuity contract, what the insurance company does is simply buy options on various indexes like the S &P 500 or the you know, there's a number of different indexes you can participate in where your money doesn't actually touch the stock market. The insurance company just buys the right to lock in today's value.