Annuities:
Who's Who In an FIA?
Who's Who in a Fixed Indexed Annuity
A fixed indexed annuity (FIA) is a contract between an individual and an insurance company. The contract outlines the terms of your agreement with the company. The contract confirms the annuity’s provisions, including each party’s rights and responsibilities. It also specifies how long your money needs to stay in the annuity and when it can be withdrawn.
Annuity Income
Certain annuity contracts can provide a lifetime income stream. For example, an FIA may provide a reasonable rate of return** over time while also safeguarding your principal amount. FIAs are typically a beneficial financial strategy for safety as their main priority. Clearly, however, there are many different options available when it comes to annuities. So, to help answer the question, “What is a fixed indexed annuity?” be sure to speak with insurance professionals–like Evergreen Team Insurance Marketing.
Who's who in a fixed indexed annuity?
Three, sometimes four, roles exist when it comes to annuity contracts such as FIAs. These are the roles within the annuity process:
Insurance Company
The issuing insurance company backs the claims of the annuity
Contract Owner
The contract owner contributes their money into the annuity (This would be you, if you decide to purchase one)
Annuitant
The annuitant receives the payout from the annuity (the contract owner and annuitant are typically the same person, but not always)
Beneficiaries
The beneficiaries receive a death benefit from the annuity after the annuitant dies