Both fixed and fixed indexed annuities offer principal protection and tax-deferred growth — but they differ significantly in how interest is credited and what upside potential they offer.
Side-by-Side Comparison
- Fixed Annuity: Guaranteed rate, predictable growth, no market link
- Fixed Indexed Annuity: Interest tied to an index, higher upside potential, floor of zero
Choose a Fixed Annuity If…
You want complete certainty — a known rate for a defined term, similar to a CD but with tax deferral. Best for those who want simplicity and guaranteed income.
Choose a Fixed Indexed Annuity If…
You want the possibility of higher growth linked to market performance while still protecting your principal. Best for those with a longer time horizon who can tolerate some variability in annual credits.
What About Income Riders?
Both types can include optional income riders (for an additional cost) that guarantee lifetime income regardless of account value. FIAs are more commonly paired with income riders due to their longer contract structures.
Not sure which fits your situation? Call us at 1-888-972-0024 and we’ll compare both options side by side for you.