Question 1

What is a fixed indexed annuity (FIA)?

Accepted Answer

A fixed indexed annuity is a contract between you and an insurance company. You deposit a lump sum, and the insurer guarantees your principal while crediting interest based on the performance of a market index (like the S&P 500). A 0% floor means you never lose principal due to market downturns.

Question 2

How is an FIA different from a regular fixed annuity?

Accepted Answer

A regular fixed annuity pays a guaranteed interest rate for a set term — similar to a CD. A fixed indexed annuity offers the potential for higher interest by linking growth to a market index, while still protecting your principal with a 0% floor. FIAs offer more growth potential with the same principal protection.

Question 3

How is an FIA different from a variable annuity?

Accepted Answer

Variable annuities invest directly in market sub-accounts and can lose value. Fixed indexed annuities are not invested in the market — they are insurance contracts with a guaranteed floor of 0%. We only offer fixed and indexed annuities, not variable annuities.

Question 4

Are fixed indexed annuities safe?

Accepted Answer

Fixed indexed annuities are among the safest financial products available. Your principal is guaranteed by the issuing insurance company and backed by state guaranty associations (up to $250,000 in most states). They are not subject to stock market risk.

Question 5

What is a cap rate?

Accepted Answer

A cap rate is the maximum interest you can earn in a given crediting period. If the index gains 15% and your cap rate is 10%, you earn 10%. If the index gains 8%, you earn 8%. If the index loses value, you earn 0%.

Question 6

What is a participation rate?

Accepted Answer

Some FIAs use a participation rate instead of a cap. If the index gains 20% and your participation rate is 60%, you earn 12% (20% × 60%). Participation rates often allow for higher upside than cap rates.

Question 7

What does the 0% floor mean?

Accepted Answer

The floor is the minimum interest you can earn in a crediting period. A 0% floor means that even if the index drops 30%, your account earns 0% — not a negative return. Your principal is always protected from market losses.

Question 8

How do FIA rates compare to CDs?

Accepted Answer

Multi-Year Guaranteed Annuities (MYGAs) typically offer higher rates than bank CDs for comparable terms, and your interest grows tax-deferred. Fixed indexed annuities offer the potential for even higher returns in good market years, while still protecting your principal.

Question 9

Can I get my money out if I need it?

Accepted Answer

Most FIAs allow penalty-free withdrawals of up to 10% of your account value per year. Many also include provisions for nursing home care, terminal illness, or required minimum distributions. Surrender charges apply for larger withdrawals in the early years of the contract.

Question 10

What is a surrender period?

Accepted Answer

The surrender period is the initial contract term (typically 5–10 years) during which withdrawals above the penalty-free amount may incur surrender charges. These charges decrease over time and typically reach 0% by the end of the surrender period.

Question 11

What happens to my annuity when I die?

Accepted Answer

Most FIAs include a death benefit that passes the remaining account value (or a guaranteed minimum) to your named beneficiaries, avoiding probate. Some income riders include a return-of-premium death benefit, ensuring your heirs receive at least what you put in.

Question 12

How does guaranteed lifetime income work?

Accepted Answer

Many FIAs offer an optional income rider that guarantees you a monthly income payment for life, regardless of how long you live or how the market performs. You choose when to start income — often at retirement — and the payment amount is calculated based on your account value, age, and the terms of the rider.

Question 13

Can I use my IRA or 401(k) to buy an FIA?

Accepted Answer

Yes. You can roll over funds from a traditional IRA, 401(k), 403(b), or other qualified retirement account into a fixed indexed annuity without triggering taxes or penalties. This is one of the most common ways retirees use FIAs.

Question 14

What is the best age to buy a fixed indexed annuity?

Accepted Answer

There is no single 'best' age, but FIAs are most commonly purchased between ages 55 and 70. Buying earlier gives your money more time to grow tax-deferred. Buying closer to retirement allows you to lock in income at a higher rate. The right time depends on your goals, timeline, and financial situation.

Question 15

Are there fees with fixed indexed annuities?

Accepted Answer

Fixed and MYGA annuities typically have no annual fees. Fixed indexed annuities may have optional rider fees (usually 0.5%–1.25% per year) if you add a guaranteed income rider. We do not offer variable annuities, which have higher fees.

Question 16

Who do you serve?

Accepted Answer

We serve adults 50 and older in Ohio, West Virginia, and Kentucky who are looking for safe, guaranteed retirement income options. We specialize in fixed annuities, indexed annuities, and IRA/401(k) rollovers. All consultations are free, no-pressure, and educational.

Question 17

How do I get started?

Accepted Answer

Simply fill out the contact form on this site or call us at 681-215-4501. We'll schedule a free, no-obligation consultation to review your situation, explain your options, and show you current rates from multiple carriers.

Frequently Asked Questions

The Basics

Rates & Growth

Access & Withdrawals

Income & Retirement

Working With Us

Still Have Questions?

Joe Unger