Annuity Guys®

Annuity Rates, Features & Ratings: America's trusted annuity resource. Compare best options for hybrid, index, fixed, variable & immediate annuity quotes.


Helping You Create Great Results Your Retirement Deserves!



(217)753-1515
  • Home
  • About Us
    • About Us
    • Contact Us
    • Site Terms & Disclosure
    • Privacy Policy
  • FAQs
    • Most Frequently Asked Annuity Questions
  • All Annuity Guys Videos
  • Annuity Types
    • Best Annuity Reviews
    • Market Free™ Annuities
    • Choosing an Annuity
    • Deferred Annuities
    • Hybrid Annuity Choices
      • Hybrid Annuity Pros&Cons
      • Hybrid Income Riders
      • Hybrid Annuity Guarantees & Strategies
    • Fixed Annuity Choices
      • Fixed Annuity Performance
      • Better Fixed Annuities
      • Fixed Deferred Annuities
      • Fixed Rate Annuities
      • Fixed Annuity Alternatives
      • Fixed Annuity Pros & Cons
      • Fixed Annuity Negatives
    • Index Annuity Choices
      • Fixed Index Annuity Features
      • Fixed Index Annuity Performance
      • Better Fixed Index Annuities
      • Fixed Index Annuity Alternatives
      • Fixed Index Annuity Pros & Cons
      • Fixed Index Annuity History
      • Fixed Index Annuity Negatives
    • Immediate Annuities
      • Immediate Variable Annuity
      • Immediate Fixed Annuities
    • Variable Annuities
      • Variable Annuity Features
      • Better Variable Annuities
      • Variable Annuities Disadvantages
      • Variable Annuity Alternatives
      • Variable Annuity Negatives
      • Variable Annuity Performance
    • Pre-Issued Annuities™
      • Hybrid Annuities versus Pre-Issued Annuities ™
    • Annuity Glossary
  • Articles
    • How Do MarketFree™ Annuities Work?
    • Are Annuities Safe?
    • Living Benefits
    • FIA Performance
    • Beware of FIAs?
    • Annuities & Retirement
    • Annuities & Estate Tax
    • Rollovers & Annuities
    • Annuities & Tax
    • Charity & Annuities
    • The Lost Decade
    • Best Annuity Videos
    • Social Security Benefits
  • Calculators
    • Retirement Planning Calculator — Basic
    • Retirement Shortfall Calculator — Basic
    • Immediate Annuity Calculator & Quotes
    • Fixed Index Annuity Calculator & Fixed Annuity Calculator
    • Variable Annuity Calculator & Hybrid Annuity Calculator
  • Blog
    • Annuity Guys® Weekly Annuity Video Blogs
  • Get Annuity Guys Help
    • Request Annuity Guys’ Planning Help Today
You are here: Home / Annuity Types / Fixed Index Annuities / Fixed Index Annuity Features

Fixed Index Annuity Features

What are the Features of the Fixed Index Annuity?

Fixed index annuities are loaded with innovation and features that are very unique to both the securities investment world and the fixed rate safe money world. This hybrid modern class of annuities features more of a balanced approach, combining to principal and accumulation with the inflation-hedging ability of limited stock market returns. Their strategic positioning limits their upside potential to less than the full upside of the stock market with the positive tradeoff of no loss years. Envision avoiding all losses and only stacking up gains. The potential is very tempting for some portion of your retirement portfolio.

 Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.

Review 3-Best Retirement Annuities for Your
GROWTH, INCOME & SAFETY!

 
Index annuities were first introduced in the U.S. about 20 years ago as an alternative to mutual fund^s, allowing growth from stock market indexes with to principal in loss years. The first offerings of these annuities were readily accepted and caught on quickly. The rest is history. Cash inflows to fixed index annuities have exploded from approximately 3 billion in 1997 to over 26 billion by 2008. During the financial crisis of 2008-2009, money flowed into these annuities so fast that many carriers actually stopped taking new clients. According to the Wharton study, many fixed indexed annuities that incorporate indexing have proven (to the critics’ surprise) to give higher returns over several recent five and ten year periods of time than the index benchmarks they are crediting from.

Did you know that a fixed index annuity, index annuity, ratchet annuity or equity indexed annuity is actually and simply a fixed annuity with an optional or an extra feature? And, in addition to having a fixed interest rate choice, it also has an optional interest crediting method that uses an external market index to determine the amount of interest to be applied after a specified term of typically one year. Important things to consider when choosing a fixed indexed annuity are:

  • High independent ratings for safety concerns
  • High interest crediting for growth
  • Generous payouts for income
  • More liquidity for emergency cash needs
  • Shorter surrender periods or lower surrender penalties
  • Additional benefits such as payouts for long term care, terminal illness and death benefits
  • Flexible income riders that allow both lifetime income and the ability to pass any remaining account value to heirs
  • More indexing options for higher growth potential
  • Better indexing strategies for higher growth potential
  • Higher cap rates, higher participation, higher averaging
  • A larger bonus
  • No or low annual fees
  • Shorter vs. a longer reset to grow and protect accumulation
  • High water mark vs. annual point-to-point
  • Higher deferred growth of the income base
  • Availability of the income base for a death benefit
  • Joint survivor income **guarantees

There are many considerations that may be relative to your situation. What fixed index annuity works best for a 50-year-old single mother may be a total disaster for you and your wife. It is important to understand that no one fixed index annuity will give you everything you need or want. So, it is necessary to prioritize your needs. List all of your preferences and needs and then prioritize them on a scale of 1-10; 1 being the least concern and 10 being the greatest. Now start the process of comparing rates and options from top companies until you find the best overall fixed index annuity to address your unique situation. Utilizing a financial planner/educator can be of great value once you have familiarized yourself with the basic aspects of fixed index annuities.

Fixed Index Annuity Features and Benefits

  • Safety: Backed by highly rated state regulated insurers
  • Tax Deferral: Tax-deferred growth
  • Higher Return: Better interest rate potential than CDs and standard fixed annuities
  • Life Insurance: Death payout **guarantees
  • Liquidity: Flexible withdrawal privileges
  • Unlimited Contributions, unlike IRAs and 401(k)s
  • Inheritance: Pass money directly to heirs bypassing probate
  • Lifetime Option: Income you can’t outlive (Annuitization or a Living Benefit Rider)

Fixed Annuity with Indexing Options

[FIA, Fixed Indexed Annuity

& EIA, Equity Indexed Annuities]

  • Lump-sum or periodic contributions
  • Invested in mostly high quality A-AAA bonds
  • Annual interest crediting risk. Insurance company **guarantees principal
  • Higher rate potential based on index performance (such as S&P 500, Dow Jones, NASDAQ, etc.)
  • Moderate growth
  • 4% to 8% interest crediting potential varies with index performance
  • 3- to 14-year term normal
  • Sophisticated, greater potential
  • Guaranteed retirement income options
  • Annual fees, minimal to none

Features of Fixed Index Annuity Summary

All fixed index annuities are tax-deferred with no income tax requirement until withdrawal. This is a definite advantage over many investments like CDs, mutual fund^s, stocks and bonds when considering a long term retirement investment. A long term fixed index annuity acquisition may consistently outperform CDs, bonds and treasuries. Reinvesting money that would otherwise be paid out in tax over an extended period of years is always an advantage. In addition, fixed index annuities have several benefits that can be important for retirement planning.

Best 3 Hybrid Annuities Ad

Question: In 2009, which insurance institution had the largest volume of new fixed index annuity business?

Answer: Allianz, a 150 year old global AM Best A-rated carrier. Aviva, another A-rated global carrier, was second to Allianz.

461
SHARES
ShareTweetGoogleLinkedinPinterestSkypeStumbleuponTumblrDeliciousDiggRedditMail

 

Empowering Annuity Reference Book

 
DOWN-LOAD NOW - FREE!
  • Annuity Guys Reference Book - 250 pages of Annuity Facts

  • "The New Retirement"
    Annuity Reference Book 
    Free Instant Download
  • Confidential - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.

 

  • Annuity Surrender Charges<br>Top Ten Questions & Answers

    Annuity Surrender Charges<br>Top Ten Questions & Answers

    Since David Lettermen retired several years ago, we decided it’s time to honor his place in history, with an annuity …Read More »
  • Are Annuities Best for Income or Growth?

    Are Annuities Best for Income or Growth?

    You have heard the old saying, “you can’t have your cake and eat it too!” But what if you could?Retirees …Read More »
  • Are Annuity Commissions Too High?

    Are Annuity Commissions Too High?

    Most of the mainstream media decries annuities as bad investment choices sold by unscrupulous agents solely to earn high commission.CNN/Money even …Read More »

Revealing Fun Video: Fiduciary Advisors Vs. Annuity Salesmen
MUST KNOW FACTS 90% of
ANNUITY ADVISORS AVOID TELLING!
  • *FIDUCIARY RETIREMENT REVIEWS
    Second Opinions Improve Retirements
     
    "For Your Retirement's Success"
     Choose a *Fiduciary Advisor who gives you Full Disclosure of Cost & Selection.
     
    Material Fact 1:
      About 90% of advisors ARE NOT REQUIRED by law to do what is best for their clients!
     
    Material Fact 2:
     Fiduciary Advisors ARE REQUIRED by law to do what's best for their clients! 
     
      Hence, clients of a fiduciary can know that their advisor chose the highest legal standard required by law to work strictly for their highest good.
     
     We estimate Fiduciaries are less than 10% of total U.S. financial service providers. Fiduciaries are held to the highest client legal standard of financial planning and investment advice.
     
     The other 90% are sales oriented advisors, brokers, bank reps, registered reps. & insurance agents, selling products on a much lower suitability legal standard, not necessarily what's best for their client!
     
       Fiduciaries also must disclose conflicts of interest that could potentially bias their advice, such as; selling products that pay them higher commissions having higher fees or costs, and their lack of investment product access limiting their client's opportunities, to name a few.
     
    Choosing your advisor can have
    "The Largest Single Impact on
    Your Retirement's Success or Failure"


  • New Social Security Cuts are Effective NOW

    New Social Security Cuts are Effective NOW

    Last week, we had no idea that congress and the president would act so quickly on such an important issue!Social Security …Read More »
  • Identifying Unethical Annuity Advisors

    Identifying Unethical Annuity Advisors

    Practicing as a financial advisor is an honorable profession that is dishonored when its practitioners employ abusive and deceptive sales …Read More »
  • Do Fixed Annuities Beat Bank Interest Rates?

    Do Fixed Annuities Beat Bank Interest Rates?

    Ever since my days of playing the board game of Monopoly, I have wanted to beat the bank. Remember drawing …Read More »
  • Why are Markets and Annuity Sales at All Time Highs?

    Why are Markets and Annuity Sales at All Time Highs?

    Equity markets increasing and annuity sales increasing at the same time is a little like cats and dogs playing together. …Read More »
  • Are Annuity **Guarantees on Their Way Down?

    Are Annuity **Guarantees on Their Way Down?

    “It was the best of times, it was the worst of times.” Dickens often quoted opening to the Tale of …Read More »
  • Buy an Annuity Now or Will Rates Rise?

    Buy an Annuity Now or Will Rates Rise?

    All things come to him who waits- provided he knows what he is waiting for… Prior to the Corona-virus it …Read More »
  • Sell in May and Go Away or Buy Annuities?

    Sell in May and Go Away or Buy Annuities?

    Life is full of profound statements and sayings that stick in our minds. For investors and brokers, the saying “sell …Read More »
  • Top Ten Fixed Index Annuity Questions to ask Before Purchasing!

    Top Ten Fixed Index Annuity Questions to ask Before Purchasing!

    And now, here’s your Fixed Index Annuity TOP TEN Countdown… while we are definitely not the Casey Kasem version of counting down the top …Read More »

View Our Newest Videos! Subscribe Now
  • Annuity Guys Videos - Annuity Answers
  • New Annuity Guys Videos
    Our Entertaining & Informative
     Saturday Morning Video Blog
  • Timely Retirement & Annuity Issues - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.


  • Beware of Best Annuity Claims (also known as) Sales Hype!

    Beware of Best Annuity Claims (also known as) Sales Hype!

     When you begin research on annuities via the internet it does not take long before you realize that most salespeople, …Read More »
  • Choosing a Fixed Index Annuity

    Choosing a Fixed Index Annuity

    All fixed index annuities are hybrid annuities – fact or fiction?  Fiction!Don’t let the sizzle fool you. You can get …Read More »
  • When is Zero Good News for Hybrid Annuities?

    When is Zero Good News for Hybrid Annuities?

    Have you called someone a “good-for-nothing” and thought you were being derogatory?With hybrid annuities, being good for nothing in the bad …Read More »
  • What’s Your Best Retirement Income Strategy?

    What’s Your Best Retirement Income Strategy?

    Retirement encompasses many joys, fears, and unknowns. One of the biggest fears according to our field observations is running out …Read More »
  • Five Top Annuity Safety Risks to Avoid

    Five Top Annuity Safety Risks to Avoid

    Annuities are safe, secure, and without risk…. hmm, well not exactly. As Annuity Guys® we expound quite a bit on the safety …Read More »
  • Exposing Why Some Advisors Love or Hate Annuities

    Exposing Why Some Advisors Love or Hate Annuities

    “Why can’t we all just get along?” It seems that the spirit of divisive partisan politics has invaded the investment …Read More »
  • Annuity Rates vs Bank Interest Rates  – Which is Best?

    Annuity Rates vs Bank Interest Rates – Which is Best?

    Since something is better than nothing, then more of that something is usually even better – thus, the reason why so many traditional bank savers have …Read More »
  • Will a Collapsed Dollar Harm Annuities?

    Will a Collapsed Dollar Harm Annuities?

    Jack in CA asks; If the dollar goes into a nose-dive,  how safe will it be to own an immediate, fixed or …Read More »
Get Newly Released Annuity Guys® Videos on Saturday Mornings
  • Annuity Guys Videos - Annuity Answers
  • New Annuity Guys Videos
    Our Entertaining & Informative
     Saturday Morning Video Blog
  • Timely Retirement & Annuity Issues - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.


  • Choosing Annuity Specialists, Local or National? Which are Best?

    Choosing Annuity Specialists, Local or National? Which are Best?

    There has been a huge shift of folks leaving local brokers and advisors to find better investment options online with …Read More »
  • Hybrid Annuity Sales Hit All Time Highs! Do You Know Why?

    Hybrid Annuity Sales Hit All Time Highs! Do You Know Why?

    Record numbers of retirees and savers are flocking to fixed and fixed index annuities – why?For many baby boomers , the great …Read More »
  • Enjoy Annuity Income While Maintaining Your Principal!

    Enjoy Annuity Income While Maintaining Your Principal!

    You can’t have your cake and eat it too… or can you?When it comes to choosing annuities, most folks want steady growth and …Read More »
  • IRA / 401k to Annuity Rollover Concerns

    IRA / 401k to Annuity Rollover Concerns

    Many of the concerns people have with moving an IRA or 401k into annuities revolve around misconceptions with how the IRS treats …Read More »
  • Why Should Anyone Rely on an Annuity?

    Why Should Anyone Rely on an Annuity?

    By protecting your income foundation with an annuity or annuities — and including Social Security and/or a pension as non-commercial …Read More »
  • Avoiding Annuity Income Rider Abuse!

    Avoiding Annuity Income Rider Abuse!

    If they tell you that your annuity has a "6%" guarantee most annuity purchasers believe that the 6% guarantee is …Read More »
  • Beat the Tax-Man Fair & Square with Annuities!

    Beat the Tax-Man Fair & Square with Annuities!

    Pay Less Tax with Annuities – Legally!Here is our list of seven advantages you should know so annuities can help you avoid …Read More »
  • Reduce Your Concern of Outliving Retirement Dollars!

    Reduce Your Concern of Outliving Retirement Dollars!

    Have you ever made a trip to the grocery store where you picked up a few items, walked up to …Read More »
  • Annuities – Liquid or Not?

    Annuities – Liquid or Not?

    As advisors who specialize in retirement planning one of the first questions we discuss with clients surrounds the subject of  liquidity. …Read More »
  • Are Annuities Good or Bad?

    In and of themselves, annuities just like any other investment are not technically good or bad. An annuity can, however, …Read More »

 

Empowering Annuity Reference Book

 
Start Reading Now - Instant Download
  • Annuity Guys Reference Book - 250 pages of Annuity Facts

  • "The New Retirement"
    Annuity Reference Book 
    Free Instant Download
  • Confidential - Easy Opt Out
  • This field is for validation purposes and should be left unchanged.

 
Comprehensive Site Terms and Disclosure | Privacy Policy | Copyright © 2025 Annuity Guys®


  ** Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. Annuities are not FDIC insured and it is possible to lose money.
Annuities are insurance products that require a premium to be paid for purchase.
Annuities do not accept or receive deposits and are not to be confused with bank issued financial instruments.
During all video segments, Dick and Eric are referring to Fixed Annuities unless otherwise specified.


  *Retirement Planning and annuity purchase assistance may be provided by Eric Judy or by referral to a recommended, experienced, Fiduciary Investment Advisor in helping Annuity Guys website visitors. Dick Van Dyke semi-retired from his Investment Advisory Practice in 2012 and now focuses on this educational Annuity Guys Website. He still maintains his insurance license in good standing and assists his current clients.
Annuity Guys' vetted and recommended Fiduciary Financial Planners are required to be properly licensed in assisting clients with their annuity and retirement planning needs. (Due diligence as a client is still always necessary when working with any advisor to check their current standing.)



  # Investors should consider the investment objectives, risks, charges and expenses of a variable annuity and its underlying investment options. The current prospectus and underlying prospectuses, which are contained in the same document, provide this and other important information. Please contact an Investment Professional or the issuing Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.


  ^ Investors should consider investment objectives, risk, charges, and expenses carefully before investing. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.


  ^ Eric Judy offers advisory services through Client One Securities, LLC an Investment Advisor. Annuity Guys Ltd. and Client One Securities, LLC are not affiliated.


461 SHARES