An equity index annuity is categorized as which type of annuity?

An equity index annuity is classified as an indexed annuity. Indexed annuities are designed to offer returns that are linked to a market index, such as the S&P 500, while also providing a level of investment protection through a minimum guaranteed return, which aligns them with characteristics of fixed annuities.

The key feature of indexed annuities is that they aim to provide the opportunity for higher returns based on the performance of the chosen index, while still maintaining the safety associated with fixed annuities, as they usually ensure a minimum guaranteed payout. This combination of features makes indexed annuities distinct from both variable and fixed annuities.

Variable annuities involve investment in various securities and do not guarantee a minimum return, while fixed annuities guarantee a specified payout regardless of market performance. Hybrid annuities, on the other hand, typically combine characteristics of different types of annuities, but equity index annuities are most accurately described under the indexed category due to their specific structure linked to a market index.