Who's Who In A
Fixed Indexed Annuity
What are the roles in a fixed indexed annuity contract? There are three, sometimes four, different parties involved. We can help you understand your options.
What Is A Fixed Indexed Annuity
A fixed indexed annuity (FIA) is a contract with an insurance company. The contract outlines the details of the agreement. So, the rights and responsibilities each party has, how long the money needs to stay in the annuity, the way the interest rate is calculated, etc., are all determined by the terms of the specific contract.
It’s possible to gain an income for life using certain annuity products. They can be set up to allow you to gain a reasonable rate of return** with guaranteed* protection of principal, regardless of what happens in the stock market.
Does An FIA Come With A Death Benefit
Certain annuity products, including FIAs, do offer a death benefit to your spouse or other beneficiaries. There are quite a few options available to you when it comes to a death benefit. For example, you may decide to have the death benefit paid as a lump sum. Or, you may have it set up so that your spouse receives it in the form of regular payments.
Whichever option you choose, be sure that you understand all the specifics. In fact, we’d be happy to answer your questions and help you understand how an FIA works. Several details do, however, come down to the individual contract and how it is set up.
Who's Who In A Fixed Indexed Annuity?
Three, sometimes four, parties are involved in an FIA contract. The four roles are as follows:
- The insurance company that issues the annuity and backs all of its claims
- The contract owner, who purchases and contributes the money to the annuity
- The annuitant, who receives the payout from the annuity (typically, the contract owner is the annuitant)
- The beneficiaries, who receive a death benefit from the annuity after the annuitant dies