Protection Benefits

Guaranteed* Income For Life With An Annuity

A fixed indexed annuity (or FIA) comes with certain benefits that other options do not. Importantly, an FIA offers you the chance to achieve guaranteed* income for life.

An FIA keeps your principal amount protected no matter what. This is in contrast to stock market-based accounts, which may drop in value if the market drops. This guaranteed* income protection is becoming increasingly important, as retirees are living longer and longer. If the possibility of outliving your retirement savings worries you, you may want to consider an annuity. Furthermore, an FIA offers more benefits. Different tax rules apply to annuities compared to other types of accounts. And, if you select an income rider, you may be able to use your FIA to counteract the negative effect of inflation.

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Earn a Reasonable Rate of Return**

During a set period (known as the accumulation phase) the money in your FIA is left to grow, tax-deferred, while it remains protected by the issuing insurance company. Your principal is protected in the event of a market loss. Once this period ends, you can withdraw this money (this is what’s known as the distribution phase) in the form of guaranteed* income.

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The Stock Market and FIAs

An FIA does not invest your money directly in the stock market. Instead, the insurance company uses an index. You see, the interest rate on your annuity uses a calculation based on the performance of a particular index. Your money is not directly invested in the market,  but can benefit off of it. You can earn a reasonable rate of return** when the index is up, yet suffer no losses when the index goes down.

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