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Who's Who in an FIA
Are Fixed Index Annuities Good For Retirement?
Who’s Who in an FIA?
Four main roles exist when speaking about annuity contracts. Specifically when it comes to fixed index annuities (FIAs). Also, it is crucial to have an insurance professional on your side that is knowledgeable about annuities. The main roles that are a part of the annuity process include:
Fixed Index Annuity Explained
In your contract, the life insurance company will go over all of your annuity contract specifics. For example, your contract will specify which type of annuity you have like a fixed index annuity (FIA) or variable annuity. The contract will also layout time frames and terms. For example, you may have a certain number of years that your annuity must grow without you taking money out.
Of course, if you need access to your money sooner, there may be options for you. However, the annuity has a “surrender period”, which exists for all annuities. Taking money out during that period is usually possible without a fee.
Do Annuities Have A Death Benefit?
Certain annuities, specifically a fixed index annuity (FIA) allow for a death benefit to your spouse or beneficiary. You may have a survival clause in your fixed index annuity (FIA).
Because many options are available, you have many choices. For example, maybe you feel that when you pass away, your death benefit should be paid out to your spouse all at once in a lump sum. Or perhaps, you’d rather your spouse receive monthly payments instead. No matter how you set up your fixed index annuity contract, be sure to take the time to go over the details.