Medicare advisors

Fixed Index Annuities

Product Overview

A fixed index annuity (FIA) is a tax-friendly product whose annual growth is benchmarked to a stock market index (such as Nasdaq, NYSE, S&P 500) instead of an interest rate. While it does bear the risk of a stock market decline, a client cannot lose any principal; many FIAs also offer premium bonuses.

An important advantage to this kind of annuity is that earnings grow on a tax-deferred basis — meaning no income taxes are paid until money is withdrawn. In addition, an FIA is a very safe option because the premium and earnings are guaranteed by the issuing insurance company.

Other benefits include:

  • Potentially higher interest rates
  • Withdrawals satisfy the Required Minimum Distributions (RMDs) for retirees over 70½ years of age
  • Ability to create probate-free inheritance

Why Agents Offer Fixed Index Annuities

Just as Fixed Index Annuities aren’t the best fit for every client, they aren’t always the best fit for Agents. Consider these questions:

  • Are these plans beneficial for the people in your community and the areas you serve?
  • Do you offer similar/competitive products?

There are many compelling reasons to offer Fixed Index Annuities, such as:

  • You can help families with some of the most difficult decisions of their life
  • You can provide your clients with peace of mind, as they will know they have a health plan behind them
  • You’ll be serving the needs of your clients and community
  • You can offer a profitable product that will help your bottom line

How to Get Started with Fixed Index Annuities

If you decide to offer Fixed Index Annuities, we recommend talking to someone from the Medicare Advisors team of experts. They’ll provide answers to your questions, and have tools available to support your new product offering.

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