Fixed Index Annuities (FIAs) are the current "go-go" product in the annuity world. I can safely predict that 9 out of every 10 fixed annuity sales pitches are pushing Indexed Annuities. It's also a good bet that an advisor or agent will eventually pitch you a FIA, so you need to fully understand the product before making any buying decision.
FIAs were introduced in 1995 to compete with CD returns. Since that time, those have been the return parameters that have occurred. The sales pitch that is too often over-hyped by the selling agent or advisor is that you will get stock market type returns. Does that occasionally happen? Yes. Looking at a blended return over time, does that happen? No. That's the rub. A broken clock is right two times a day, but you don't rely on that clock.
Too many times, FIA buyers are making their decision on non-guaranteed proposal return scenarios. Never base your decision on hypothetical, theoretical, projected, back-tested, or hopeful agent return scenarios. Anyone can "juice" the numbers, but the reality is that FIAs are FIXED annuities. They are life insurance products. They are NOT securities.
FIAs are also efficient delivery systems for attached benefit Income Riders for future lifetime income guarantees. It's a separate calculation from the index value, but it is a contractual guarantee that solves for longevity risk.
Contact Stan The Annuity Man to get Fixed Index Annuity (FIA) quotes using Stan's proprietary annuity calculators, and to access quotes for all types of annuities. You can also receive Stan's FIA Owner's Manual for free and under no obligation.