Annuity Type
Fixed Indexed Annuities (FIAs)
A fixed indexed annuity credits interest based on the performance of a market index — with a guaranteed floor of zero. You can share in market gains, but you never lose principal to market losses.
How an FIA works
Your deposit is not invested directly in the stock market. Instead, the insurance company credits interest based on a market index (like the S&P 500) using a cap, participation rate, or spread. If the index goes up, you receive a portion of that gain. If the index goes down, your credit for that year is simply zero — your principal and prior gains stay locked in.
Why retirees choose FIAs
- Principal protection: a losing year in the market cannot reduce your account value
- Upside potential linked to a market index, with prior gains locked in
- Tax-deferred growth until withdrawal
- Optional income riders that guarantee lifetime income you can't outlive
- A middle-ground option between the safety of CDs and the risk of investing directly
What to compare
FIAs vary significantly by carrier: index options, caps, participation rates, spreads, surrender schedules, and income rider benefits all differ. A licensed advisor can help you compare current products from top-rated carriers so you understand exactly what you're getting — and what the trade-offs are.
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Related
Fixed Annuities
Guaranteed interest rate and full principal protection for a set term.
MYGAs (Multi-Year Guaranteed Annuities)
Lock in a fixed rate for 2–10 years with tax-deferred growth.
Retirement Income Planning
Build guaranteed lifetime income you can't outlive.
Annuities Overview
Compare fixed, indexed, and MYGA annuities side by side.
Compare current FIA products
A licensed specialist will send you side-by-side comparisons of top-rated FIAs available in your state.