PROTECT YOUR SAVINGS.
PLAN YOUR RETIREMENT INCOME.

Fixed Indexed Annuities: Principal Protection and Growth Potential

A fixed indexed annuity (FIA) is an insurance contract that may credit interest based partly on a market index, without directly investing your money in that index. Traditional FIAs generally protect contract principal from negative index performance. Caps, spreads, participation rates, and other contract terms limit credited interest; withdrawals, charges, and adjustments can reduce amounts received.

Lifetime Retirement Income Options

Some annuities offer guaranteed lifetime income through annuitization or optional income benefits. Available income depends on the contract and election. Guarantees are backed by the issuing insurance company's claims-paying ability. Optional benefits can involve fees and restrictions.

Fixed Annuities and MYGAs vs. CDs

Multi-year guaranteed annuities (MYGAs) typically offer a stated interest rate for a specified term. Compare MYGA rates with bank CDs while considering surrender periods, liquidity, taxes, and insurer strength. Annuities are not bank deposits and are not FDIC-insured.

401(k) and IRA Rollover Options

Retiring or changing jobs may create choices for existing retirement assets. An annuity within a traditional IRA or 401(k) does not add extra tax deferral. Consider costs, income benefits, liquidity, and tax implications before any rollover. Moving retirement assets is not automatically appropriate.

IUL vs. Annuity: Different Retirement Purposes

Indexed universal life (IUL) is permanent life insurance with death benefit protection and potential cash-value accumulation. Premiums, policy charges, and index-crediting terms affect results. Policy loans and withdrawals can reduce cash value and benefits and may create tax consequences or cause lapse. Annuities are designed primarily for accumulation and/or retirement income. These are different products for different needs.

Retirement Planning — Common Questions

Can a fixed indexed annuity lose money?

Negative index returns generally do not directly reduce protected index-linked values in traditional FIAs. But surrender charges, withdrawals, rider fees, or contract adjustments may reduce the amount available. Registered index-linked annuities have different risks.

Can annuities provide income for life?

Some contracts offer lifetime income options, subject to the contract's terms and the issuing insurer's claims-paying ability.

Is an annuity better than a CD?

Neither is universally better. Compare rates, deposit insurance, tax treatment, access to funds, fees, and surrender restrictions.

What fees and limitations should I compare?

Depending on the product: surrender charges, optional rider fees, caps, spreads, participation rates, and market value adjustments. Some costs are implicit in credited-interest limits. Request the specific product disclosures.

How can I compare retirement options?

Start with your retirement date, income needs, available savings, liquidity requirements, and insurance needs. Request information about available options before choosing a product.