A Fixed Indexed Annuity (FIA) is an insurance contract that combines protection from direct market losses with the opportunity to earn interest based in part on the performance of a market index.

You are not directly invested in the stock market or the index. Instead, the insurance company uses a formula to determine how much interest is credited to your contract based on the performance of a selected index.

When you purchase a fixed indexed annuity, you can typically choose among one or more crediting strategies.

These may be linked to indexes such as the S&P 500 or other market indexes. The amount of interest credited may be determined using features such as:

• Participation rates
• Caps
• Spreads
• Index crediting periods
• Fixed-interest options

For example, if an index rises, your annuity may receive a portion of that increase according to the terms of the contract.

If the index falls, the indexed portion of the contract generally does not receive a negative interest credit because of that market decline, subject to the contract terms.

Fixed indexed annuities are designed to provide a balance between growth potential and protection.

They may offer:

• Tax-deferred growth
• Protection from direct stock market losses
• Index-linked interest potential
• Multiple crediting strategies
• Optional lifetime income features
• Beneficiary options

An FIA does not provide the full return of the underlying index because credited interest may be limited by participation rates, caps, spreads, or other contract provisions. Index returns also generally exclude dividends.

An FIA may be appropriate for someone who:

• Wants greater growth potential than a traditional fixed-rate product
• Does not want direct exposure to stock market losses
• Is comfortable holding money for a longer period
• Wants future income options
• Values principal protection over unlimited upside potential

Fixed indexed annuities may have surrender periods and limitations on withdrawals. Optional income riders or other benefits may carry additional costs or affect contract values.

Guarantees are subject to the terms of the contract and the claims-paying ability of the issuing insurance company.

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