Back to Portfolios
Portfolio II • Growth & Accumulation

Fixed Indexed Annuities.Build toward retirement income with a strategy designed for the long term.

An annuity contract that may offer accumulation and income features, with interest crediting linked in part to an external market index — subject to contract terms.

Understand FIAs Explore Retirement Income

What Is a Fixed Indexed Annuity?

An annuity contract, built for the long term.

A fixed indexed annuity is an insurance contract designed to provide accumulation and/or income features, with interest-crediting options that may be linked to the performance of an external market index.

You don’t invest directly in the index. The contract’s crediting method determines how index performance translates into credited interest, subject to contract terms.

An annuity contract

Not life insurance, and not a direct investment.

Index-linked crediting

Interest tied in part to an external index.

Future income options

Depending on the contract and its features.

How It Works

From premium to future income.

  1. Premium
  2. Contract
  3. Crediting
  4. Contract Value
  5. Future Income

You fund the contract with a premium.

The insurer issues the annuity contract.

Your chosen method determines credited interest.

Credited interest adds to the contract value.

Value may later support income options.

Index Crediting

Index performance, translated.

The contract’s crediting formula converts index performance into contract interest — it does not pass along the index’s full return.

  1. Index Performance
  2. Crediting Formula
  3. Contract Interest

Hypothetical index gain of 10% • Select a feature

Participation rate

5%

At a hypothetical 50% participation rate.

The share of the index’s gain used to calculate interest.

Cap

6%

At a hypothetical 6% cap.

The maximum interest that can be credited for a period.

Spread / margin

8%

At a hypothetical 2% spread.

A percentage subtracted from the index gain before interest is credited.

Hypothetical, simplified examples for one period. Crediting methods, rates, and features vary by contract and may change; not every FIA uses each feature.

Protection, Guarantees & Market Exposure

An insurance contract — not an index fund.

Index fund

  • An investment that directly owns the securities in an index.
  • Value rises and falls directly with the market.
  • No insurer guarantees.

Fixed indexed annuity

  • An insurance contract with an insurer.
  • Index-linked crediting, without direct ownership of the index.
  • Guarantees depend on contract terms and the claims-paying ability of the issuing insurer.
  • How negative index periods are treated depends on the contract’s crediting method and terms.
An older couple with grey hair walking arm in arm down a road
Retirement Income05

Retirement Income

From accumulation to income.

An FIA may be used as part of tax-advantaged retirement planning, and may provide options for future income, depending on the contract.

  1. 01

    Accumulation

    Contract value may grow through credited interest on a tax-deferred basis.

  2. 02

    Planning

    Coordinate timing and income options with your broader retirement plan.

  3. 03

    Income

    Depending on the contract, options may include income riders or annuitization.

Withdrawals and distributions may have tax consequences that depend on applicable tax rules and individual circumstances.

What to Consider

Ten considerations, one conversation.

Tap any card to learn more.

Time horizon

How long you plan to hold the contract.

FIAs are generally designed as long-term contracts.

Income objectives

When and how you may want income.

Income features and timing vary by contract.

Liquidity needs

Access you may need along the way.

Many contracts limit access during early years.

Crediting method

How interest is calculated.

Methods, caps, rates, and spreads differ by contract.

Fees & charges

Costs, where applicable.

Optional riders may carry additional charges.

Surrender period

The early-years commitment.

Surrender charges may apply to early withdrawals.

Withdrawal provisions

How much can be taken, and when.

Many contracts allow limited penalty-free withdrawals.

Income options

Ways value may become income.

Options may include riders or annuitization.

Insurer strength

Who stands behind the guarantees.

Guarantees depend on the issuing insurer’s claims-paying ability.

Your objectives

What the plan is meant to achieve.

Suitability depends on your full financial picture.

A lone boat drifting on a calm turquoise mountain lake

The Long-Term View

A planning tool, designed around your objectives.

Suitability depends on your goals and the contract’s terms.

  1. Structure
  2. Accumulate
  3. Plan
  4. Generate Income

Portfolio II

Growth & Accumulation, three ways.

  1. 2.1

    Indexed Universal Life

    Protection with potential for long-term growth.

    Explore
  2. 2.2

    Juvenile Life Insurance

    Start early. Build protection for the future.

    Explore
  3. You are here

    Fixed Indexed Annuities

    Build toward retirement income for the long term.