With an FIA, you make a lump sum payment or a series of payments to an insurance company in exchange for regular income payments. The returns are often linked to the performance of a market index (such as the S&P 500), but the principal amount is generally protected, meaning it won't decrease due to market downturns. The insurer typically provides a minimum guaranteed return.

• Guaranteed Income: FIAs provide a predictable and reliable income stream, which is ideal for retirees seeking financial stability.

• Principal Protection: Your initial investment is protected, so you won’t lose money due to market declines.

• Tax Deferral: Earnings within the FIA grow tax-deferred until withdrawal, which can be beneficial for long-term growth.

• Flexible Payout Options: FIAs offer a variety of payout options, including lifetime payments or for a specific number of years.

The key difference lies in how returns are earned:

• Fixed Income Annuity (FIA): The return is typically linked to a market index, with a guaranteed minimum return and no risk of principal loss.

• Variable Annuity: The return is tied directly to the performance of underlying investment options, meaning the value of the annuity can go up or down based on market performance.

No, your principal investment is generally protected, and you will not lose money due to market downturns. However, the amount of income you receive may be limited by factors such as caps or participation rates tied to the market index performance.

FIAs offer several payout options, including:

• Lifetime Income: Provides income for the rest of your life, regardless of how long you live.

• Period Certain Income: Provides income for a specific number of years (e.g., 10 or 20 years).

• Joint and Survivor Income: Provides income for you and a beneficiary (such as a spouse) for as long as either of you is alive.