Fixed index annuities provide the guarantees of fixed annuities, combined with the opportunity to earn interest based on changes in an external market index. But because you’re not actually participating in the market, the money in your annuity (your “principal”) is not at risk.
A fixed index annuity may be a good choice if you want the opportunity for accumulation, but don’t want to risk losing money in the market.
Fixed index annuities can offer:
One or more index allocation options
A choice of crediting methods
Income options, including income for life
Death benefit options
Optional benefits that may help protect your retirement assets and income (available at an additional cost)