An equity-indexed (fixed indexed) annuity protects the owner against index losses by providing:

Explanation

A fixed indexed annuity credits interest linked to a market index but includes a guaranteed floor (commonly zero percent), so a down year in the index does not reduce the account value below that floor, offering downside protection. Its upside is not unlimited; it is limited by caps and participation rates. Its guarantees are not a variable death benefit, and it is not covered by federal deposit insurance. The floor is what shields the owner from index declines.