Annuities:
Who's Who in an FIA?
Who's Who in a Fixed Indexed Annuity?
An FIA (fixed indexed annuity) is a contract between an insurance company and an individual. The terms of the agreement between you and the company are outlined in the contract, together with the rights and obligations of each party. It also outlines when your money can be withdrawn from the annuity and how long it must remain there. Since there is a lot of variety with these products, make sure to consult a professional with any questions you may have – Contact us if you believe that an FIA could be the option for you.
So, who’s who in a fixed indexed annuity? There are three, sometimes four, responsible parties in an FIA contract. These are as follows:
- The issuing insurance company, who backs the claims of the annuity
- The contract owner, who contributes their money into the annuity (This would be you, if you decide to purchase one)
- The annuitant, who receives the payout from the annuity (the contract owner and the annuitant are usually the same person, but in some cases can be different)
- And the beneficiaries, who receive a death benefit payout from the annuity if the annuitant dies
What is a Fixed Indexed Annuity?
All of the info regarding your annuity will be outlined by the issuing insurance company in the contract.
For instance, the amount of time you have to wait to take the money out. This period is referred to as the accumulation phase. If you need to access your money quicker, however, there may be some options for you. The ‘distribution stage’ is the point at which you start taking payments. Specifics like the crediting method and the regularity of payments also differ. Reach out to us to learn more.