Why Choose a Fixed Indexed Annuity?
The best of both worlds: market-linked growth potential with absolute principal protection
Your money is never at risk from market declines. When the index goes down, your account value stays the same — it simply doesn't earn interest that period.
Earn interest based on the performance of a market index like the S&P 500. When the market rises, your annuity credits interest — giving you higher growth potential than traditional fixed annuities.
All earnings grow tax-deferred — you pay no taxes until you withdraw. This allows your money to compound faster over time, maximizing your retirement savings.
What You Get With a Fixed Indexed Annuity
Perfect For:
- Pre-retirees seeking growth without risk
- Conservative investors tired of market volatility
- Supplementing Social Security income
- Protecting retirement savings from downturns
- Creating guaranteed lifetime income
How Fixed Indexed Annuities Work
Understanding the mechanics of index-linked growth with downside protection
Choose Your Index
Your annuity is linked to a market index like the S&P 500. You choose the index strategy that fits your goals.
Market Goes Up
When the index rises, your annuity credits interest based on a portion of that gain (determined by participation rate or cap). You earn competitive returns.
Market Goes Down
When the index falls, your account value is protected. You don't lose a penny — you simply don't earn interest for that period. Your principal stays safe.
Common Questions About Fixed Indexed Annuities
A Fixed Indexed Annuity is a contract with an insurance company where your interest earnings are linked to the performance of a market index, like the S&P 500. Unlike variable annuities, your money is not directly invested in the market — meaning you can earn competitive returns when the index rises, but you'll never lose money when it falls.
When the market index goes up, your annuity credits interest based on a portion of that gain (determined by a participation rate, cap, or spread). When the index goes down, your account value is protected and simply doesn't earn interest that period — but it never loses value. This gives you upside potential with downside protection.
A traditional fixed annuity offers a guaranteed interest rate set by the insurance company. A Fixed Indexed Annuity links your interest to a market index, giving you the potential for higher returns when the market performs well — while still protecting your principal from losses. FIAs offer more growth opportunity without the market risk.
Yes. Your principal is protected from market losses — when the index declines, your account value stays the same (it just doesn't earn interest that period). FIAs are backed by the financial strength of the issuing insurance company and typically include state guaranty association protections.
FIAs are ideal for pre-retirees (ages 50-65) and retirees who want growth potential without market risk, are concerned about outliving their savings, or want to create guaranteed lifetime income. They're particularly valuable for those who want to supplement Social Security and pension income.
Most FIAs allow penalty-free withdrawals of up to 10% of your account value annually after the first year. Many also include liquidity riders for nursing home care, terminal illness, or unemployment. Surrender charges typically apply if you withdraw more than the allowed amount during the surrender period (usually 5-10 years).
Benefits of a Final Expense Plan
Protect your family from the financial burden of final expenses. Watch this short video to learn how a final expense plan works and why it matters.
Why Final Expense Coverage Matters
Understanding Your Options for Final Expense
There are several types of final expense coverage available. Watch this video to understand which option might be right for your family's needs.
Types of Final Expense Coverage
Whole Life Final Expense
Permanent coverage with guaranteed premiums and cash value accumulation. Coverage lasts your entire lifetime.
Simplified Issue
No medical exam required — just a few health questions. Quick approval process with coverage starting immediately.
Guaranteed Issue
No health questions at all. Available regardless of medical history, with a graded death benefit in the first 2-3 years.
Pre-Need / Funeral Trust
Policy specifically designed to pre-fund funeral expenses, often paid directly to the funeral home of your choice.