Who's Who In An FIA?

Who's Who in a Fixed Indexed Annuity?

One potential option for your retirement is a fixed indexed annuity, or FIA.

Before we explain the different roles and “who’s who” in an FIA, let’s briefly explain what it is. An FIA is a contract with an insurance company. Furthermore, the terms and conditions are defined within the contract. For example, How long will your money stay in the accumulation phase? What fees does it come with? What are the responsibilities the insurance company is required to uphold? Each FIA contract comes with its own specifics.

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The Main Benefits of a Fixed Indexed Annuity

An FIA can be set up to provide you with guaranteed* lifetime income. Additionally, you may be able to earn reasonable rates of return over time. However, the biggest benefit of an FIA is the stability it offers. So, it differs from a number of traditional retirement accounts.

The Roles in an FIA

There are three, sometimes four roles involved in an FIA contract. First, however, it’s important to get informed in regards to how FIAs work. Are you considering purchasing one as part of your retirement strategy? Helping clients get educated is one of our top priorities. So, that being said, here are the roles involved:

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Death Benefits From FIAs

As we stated, an FIA offers a death benefit to your beneficiaries. These agreements may provide you with a way to provide income payments, or one lump sum, to your spouse after your passing. You can also select the frequency of these payments. So, as you can see, there are a lot of options available to you with an FIA.

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Income Payments

So, what about income? When can you take income from your fixed indexed annuity? Well, this depends upon the terms of your individual contract. How much money do you receive at a time? Can you take money out in case of emergencies? Furthermore, when do you receive payments: monthly, yearly, or quarterly? There are a lot of options and a lot of flexibility when it comes to an FIA. Reach out to us to get informed, so you can make the right choices for yourself.

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