How does an equity$-$indexed annuity $($EIA$)$ balance the potential for growth with market risk?

A$)$

An EIA provides market$-$linked growth potential with a cap on returns, but it guarantees no protection if the market declines.

B$)$

An EIA limits both the potential gains and the potential losses by capping returns and offering a guaranteed minimum return in the event of a market decline.

C$)$

An EIA allows you to participate in all market gains while protecting you from any losses, ensuring steady returns over time.

D$)$

An EIA offers the same returns as the stock market, but with no risk of losing money because it guarantees a minimum return.