Fixed Index Annuities (FIA) can offer several benefits. Tax deferral gains in your FIA contract grow tax-deferred until you withdraw your money, though you may have to pay penalties or taxes IF you take a distribution before the age of 59 and a half.

• Contributions or premiums are guaranteed to not lose value

• FIA’s can grow in value over a designated accumulation period and their rate of return is tied to a broader index like the S&P 500

• You can choose a beneficiary who will receive a lump sum payment of the remaining balance in your account at the date of death

• You can designate a beneficiary instead of paying funds to your estate which may help loved ones avoid the expense and time of probate

• FIA’s provide a guaranteed rate of return over the time specified in the contract so you don’t have to worry about your income stream being reduced if interest rates decrease or if investments underperform

• FIA’s can be less expensive than other annuities like variable annuities because they’re relatively simple and don’t have any complicated rules