Final answer:
The statement that is NOT true about an Equity Indexed Annuity is that since the funds are based on an investment index, it is possible to lose all the money in the fund.
Step-by-step explanation:
The statement that is NOT true about an Equity Indexed Annuity is option C: Since the funds are based on an investment index, it is possible to lose all the money in the fund.
Equity Indexed Annuities are financial products that offer potential returns linked to the performance of a specific index, such as a bond index or a stock index. However, unlike traditional investment options like stocks or mutual funds, indexed annuities usually come with a guaranteed minimum interest rate, as stated in option D. This means that even if the performance of the index is poor, the annuity contract will still provide a minimum level of interest.
Therefore, option C is the incorrect statement about an Equity Indexed Annuity.