Abstract
One of the common agent objections to equity index annuities centers on agent concern about the reduced upside potential of EIAs at today's participation rates. While certainly possessing the potential to produce higher double-digit interest rates in some years, EIAs will, under normal circumstances, produce interest rates that are more in line with safe-money alternatives like certificates of deposit, and money market funds. The higher end of the interest rate spectrum is really served by variable investments that also come with significantly greater risk. Double-digit interest rate results are not what clients should be expecting of safe-money dollars in today's interest rate environment. When EIAs are viewed in the light of their targeted objective, however, they still provide a competitive potential to produce interest rates that meet or exceed available alternatives, despite having a reduced higher upside expectation.