Who's Who in Fixed Index Annuities

Who's Who in an FIA

An Overview of Fixed Index Annuities

FIAs (Fixed Index Annuities) are contracts between you and your insurer.

An FIA earns interest based on the performance of an index, such as the S&P 500. When the index is positive, interest is credited. But if the index is down, you aren’t at risk of losing any money. Your rate is fixed annually. So, you will not lose money when the market declines.  FIAs do more than just accumulate funds for retirement. They also provide regular retirement income.


A Look at Who's Who in Fixed Index Annuities

FIAs typically involve four parties:

  • Insurance Company: Annuities are issued by life insurance companies. The insurance company is responsible for guaranteeing the safety of your principal that you’ve contributed.
  • Contract Owner: The contract owner is the one who makes decisions regarding the annuity, such as who the beneficiaries are.
  • Annuitant: The owner and annuitant are generally the same people, but not always. The amount that the annuitant will receive depends on their life expectancy.
  • Beneficiary: The death benefit goes to your beneficiary when you die. It’s important to name at least one beneficiary. If no beneficiary is named, then the annuity will be probated. 

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Choosing A Retirement Professional

There is no single retirement strategy that fits everyone. We take into account your individual financial situation, to help find the one that’s right for you. Our main focus is on keeping your principal protected, and an FIA may be a way to do that. 

Find out more about fixed index annuities by getting in touch with us.

You can schedule a meeting, or book a seat at one of our no-cost educational seminars. 

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