An insurance contract designed for long-term planning.

A Fixed Indexed Annuity (FIA) is an insurance contract.

Depending on the contract, interest credits may be linked in part to an external market index while the contract provides certain guarantees.

You do not directly invest in the underlying index.

WHY MIGHT SOMEONE CONSIDER AN FIA?

Tax-deferred accumulation.

Contractual guarantees.

Interest-crediting potential linked to an external index.

Retirement-income options.

Protection from negative index credits under certain crediting methods.

The specific features and terms depend on the contract.

HOW IS INTEREST CREDITED?

Fixed indexed annuities can use different interest-crediting methods. These methods determine how index performance is used to calculate interest credits.

A maximum credited interest rate under a particular crediting method.

The portion of index performance used in the interest-crediting formula.

Amounts that can affect the interest credited under certain methods.

Crediting methods, caps, participation rates, spreads, and other terms can vary by contract and may change according to the contract provisions.

WHAT HAPPENS WHEN THE INDEX GOES DOWN?

Under certain crediting methods, a negative index return may result in a zero interest credit rather than a negative index credit.

That can help protect the contract from a negative index credit under that particular method.

However, this should not be confused with an absence of risk. Contract charges, surrender provisions, withdrawals, and other terms still matter.

WHAT SHOULD YOU CONSIDER?

An FIA is a long-term insurance contract and should be understood before making a commitment.

Surrender periods and surrender charges.

Withdrawal provisions and potential limitations.

Liquidity needs.

Interest-crediting methods and current terms.

Contractual guarantees.

Income options.

The financial strength and claims-paying ability of the issuing insurer.

Any guarantees provided by an FIA are contractual guarantees of the issuing insurance company and depend on that insurer's claims-paying ability.

It is important to understand what is guaranteed, what is not guaranteed, and what conditions apply.

Depending on the contract, an FIA may provide options for creating income during retirement.

The amount and timing of income can depend on the contract, the amount applied, interest-crediting provisions, withdrawals, rider provisions, and other factors.

Income options should be evaluated in the context of your broader retirement plan rather than viewed in isolation.

What is guaranteed?

What is not guaranteed?

How long is the surrender period?

What happens if I need the money early?

How is interest calculated?

What are the current caps, participation rates, and spreads?

What withdrawal provisions apply?

What income options are available?

What fees or charges apply?

What happens if my needs change?

UNDERSTAND THE CONTRACT BEFORE YOU CONSIDER THE STRATEGY.