A fixed indexed annuity is a contract with a life insurance company. Interest is credited based in part on a market index's performance, subject to caps, participation rates, and other limits, and the money isn't invested directly in the market. Contracts generally carry surrender charges for early withdrawals, and guarantees depend on the issuer's claims-paying ability. Some contracts offer optional rider features for an added fee. Features vary widely by contract.
Sunny Financial Group, an independent insurance agency in Sarasota, Florida (licensed in 21 states), reviews these options in a private conversation.
Fixed Indexed Annuities are insurance contracts that may offer indexed interest crediting potential, protection from direct market loss under contract terms, and optional income features. They should be reviewed carefully for liquidity, surrender charges, fees, crediting limits, income rider terms, tax treatment, and suitability.