Equity Indexed Annuities (EIAs) are characterized by a contract return that is the greater of an annual minimum rate (typically 3%) or the turn from a stock market index, such as the Standard & Poor’s 500 index, reduced by certain expenses and formulas. If the chosen index rises sufficiently during a specific period, a greater return is credited to the contract owner’s account for that period. If the stock market index does not rise sufficiently, or even declines, the lower minimum rate is credited. An owner is guaranteed to receive back at least all principal, if an EIA contract is held for a minimum period of time.