A fixed indexed annuity (FIA) gives you the opportunity to earn interest linked to a market index — like the S&P 500 — while protecting your principal from market losses. You don’t invest directly in the market, so you can never lose money due to a market downturn.
FIAs are one of the most popular annuity types because they offer a middle ground: more growth potential than a traditional fixed annuity, with the same downside protection. Call us at 1-888-972-0024 to compare options.
How Fixed Indexed Annuities Work
Your interest credits are tied to the performance of an index (e.g., S&P 500). When the index goes up, you earn a portion of that gain. When it goes down, you earn zero — but you don’t lose principal.
Carriers use participation rates, caps, and spreads to determine how much index growth you receive. A 60% participation rate on a 10% index gain means you earn 6%.
Most FIAs lock in gains each year so prior credits are never at risk. Your “floor” rises over time, which is a key advantage over variable annuities.
FIAs are the most common annuity used with income riders, allowing you to build a guaranteed lifetime income stream while still benefiting from index-linked growth.
FIA vs. Fixed Annuity: Key Differences
A traditional fixed annuity pays a declared rate every year. A fixed indexed annuity pays variable credits based on index performance, with a minimum floor of 0%. If you want more upside potential but still need downside protection, a FIA may be the better choice.
Explore FIA Resources
A plain-English guide to how FIAs work and who they’re designed for.
Side-by-side comparison to help you decide which structure fits your retirement goals.
Know what costs to look for before selecting an FIA contract.
We work with top-rated carriers offering competitive FIA products.
We shop multiple carriers to find the FIA with the best participation rates and income features for your situation.