What Is A Fixed Indexed Annuity?

A fixed indexed annuity is a contract between you and an insurance company. In return for your money, or ‘premium,’ the insurance company agrees to provide certain benefits, such as:
Guarantees. Your contract has a minimum guaranteed contract value.
Growth. You can receive interest credits that are linked in part to the performance of an external market index or a fixed interest rate.
Tax Deferral. Annuities provide the advantage of tax-deferred interest
accumulation. You don’t pay taxes on the growth until you take withdrawals.
Protection. There is no direct downside market risk to your money. Income. At a future date, you have the option of a lump sum payment or a regular stream of income—either for a certain period of time or for the rest of your life.
Security. Annuities have a death benefit that ensures your beneficiaries receive any remaining contract value. Annuity Definition