Indexed Interest Potential

Benefits of Annuity Income

There are numerous advantages to receiving fixed indexed annuity income in retirement. With an FIA, you can protect the money you’ve worked hard for most of your life to save. It also allows you to receive a reasonable rate of return** based on the success of an index. The insurance company protects your money; you will not lose money even if the stock market drops. However, when the market is rising, you may receive higher interest. Many retirees see this as one of the biggest benefits of annuity income.

Crediting Method

When purchasing an FIA, you choose an index or indexes to contribute to the annuity's value. You can also choose which crediting method to utilize. For example, you may select a monthly or annual crediting method. Some crediting techniques take an average of value over a period of time. Others, however, base interest on the difference in rates over time. Alternatively, the crediting method could be based on the change in the index front since the first-anniversary contract date.

What Affects Interest Rates

It's important to examine the factors that will impact the interest rate on your FIA. These include:

portrait of grandfather with his grandson on his shoulders annuity income
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