How Good Are Indexed Annuities? 
Financial planning is not normally built upon the attributes of a single product . An indexed annuity provides some growth potential while eliminating loss . The company agrees to pay interest on the money in the annuity at the higher of 0 % up to a percentage of the chosen index -LRB- S&P 500 -RRB- . There is another way these interest rates are computed but it is a slightly more aggressive product than a regular , guaranteed interest annuity . 