Why is an equity indexed considered to be a fixed annuity?

An equity indexed annuity is considered a fixed annuity because it offers a guaranteed minimum return, similar to traditional fixed annuities, while also providing potential for additional growth linked to a Stock Market index. This product combines the stability of fixed returns with the opportunity for higher gains, but it typically includes caps on the maximum returns. The principal investment is protected, which aligns with the fixed annuity's characteristic of safety and predictability.