What Is Wrong With Equity Indexed Annuities? 
Theres no moral value to saving and investment products , but they do require product suitability with the potential product buyer . Generally , tax deferred indexed annuities use domestic and foreign indice options and use three basic crediting methods : caps , participating rates and spreads . When an index goes up the policy is credited according to the policy method . When the index goes down the policy is not debited , i.e. insulating the annuity from market downturns . But keep in mind that these polices , like most products , have internal policy expenses that could by virtue of the contract cost result in a negative performance . 