Annuities
Who's Who In An FIA?
Who's Who in a Fixed Indexed Annuity?
A fixed indexed annuity is a contract with an insurance company.
It can be set up to provide you with guaranteed* income for life. The terms and conditions are defined within the contract. For example, how long will you have to wait to take your money out? What fees does your policy come with? What are the responsibilities the insurance company is required to uphold? Each FIA contract comes with its own specifics.
The Roles in an FIA
There are three, sometimes four (we'll get to that) roles within a fixed indexed annuity contract. These include:
- The issuing insurance company, which backs the guarantees outlined in the contract
- The contract owner, i.e. the person who purchases it
-
The annuitant; their life expectancy determines how much they will receive in benefits
(However, the contract owner and the annuitant are typically the same person)
- The beneficiary or beneficiaries designated by the annuitant, who will receive a death benefit when they pass away
Death Benefit From an FIA?
An FIA offers a death benefit to your beneficiaries. This benefit avoids probate, and you can select if you want it to be received in a series of payments, whether they’re monthly, annually, or quarterly, or all in one lump sum. As you can see, there are a lot of options and a lot of flexibility when it comes to a fixed indexed annuity. Reach out to us to get informed, so you can make the right choices for yourself. You could reserve a spot at one of our educational seminar events. Alternatively, you could schedule a one-on-one meeting with us to discuss your specific situation.