In some annuities the average of an index s value is used rather than the actual value of the index on a specified date. In a fixed indexed annuity the floor is expressed as a guaranteed minimum interest rate this floor is usually set at at an annual rate of 0 meaning that even if the index decreases in value the interest to be credited won t be negative. This doesn t mean that they re bad but it does mean that you should review any potential annuity purchases carefully.
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