The case for fixed index annuities

Could your product shelf benefit from a fixed index annuity (FIA)?

Setting up the case

Clients are curious
Fixed index annuities have spiked in popularity over the last 10 years.1 As a stable option attractive to more risk-averse clients, FIAs can help guarantee a client won’t outlive their money through lifetime income options while still offering a potential for growth.

 

FIAs and YOU
While some may say FIAs seem too good to be true, we created the Case for FIAs microsite to help you reach your own verdict. When you’re ready to start talking about FIAs, simply use the client materials at the bottom of the site, or order a physical Case for FIAs kit. .

 

What is an FIA?
A fixed index annuity is an insurance contract on which credited interest is based in part upon the performance of an underlying market index. The premium is protected from losses in the market, while a portion of the gains may be credited to the contract. Any credited interest also cannot be lost due to market downturns.

Common objections to fixed index annuities

  • FIAs are too complicated and have too many moving parts.

    Rebuttal: Like many products, the simplicity can be found in a simple story. FIAs offer a story many consumers may be looking for: growth potential without risk of loss due to market downturns.
  • FIAs are only for risk-averse or conservative savers.

    Rebuttal: The reality is clients who want a financial foundation that cannot be lost due to market downturns could be open to FIAs. As a way to help avoid downside market risk, FIAs can be a vital part of a balanced financial plan.
  • FIA owners’ premium is “locked up” and not accessible.

    Rebuttal: Surrender charge periods help to secure client’s funds so they have the time and opportunity to grow. However, many FIAs have features or optional riders that could help provide some liquidity when clients may need it most.
  • FIAs have little or no growth.

    Rebuttal: Clients may miss some upside potential to have protection. But, while most FIAs average 2-5% growth2, some strategies don't have a traditional cap which could mean higher upside potential during market growth years.

Evidence for fixed index annuities

What you’re offering may be great, but there may be a gap where a fixed index annuity (FIA) could provide balance. Familiarize yourself with the key FIA benefits, and click ‘read more’ to expand each point. The evidence speaks for itself.

 

  1. Downside protection from market downturns.
  2. Potential for growth (that your clients can't lose due to market downturns once credited).
  3. Balance to your existing product offerings.
  4. Flexibility helps protect against the unexpected.
  5. Income clients can't outlive.
 

Now that you've seen the compelling evidence for fixed index annuities, it's time to decide. What's your verdict?

Get started

Find clients

  • Top 3 places to find FIA clients.
    1. Mine your current book of business.
    2. Partner with local services providers, such as a lawyer, tax accountant, etc.
    3. Ask your trusted clients for referrals or introductions

Client profile

  • Our typical FIA client is getting ready to retire or is early in retirement years and wishes to maintain their current lifestyle in retirement.
  • They value independence, want to avoid market volatility, and desire to leave a legacy for future generations.
  • Do you know someone who fits this description?

Start conversations

Here are the tools you may need to help win the case with fixed index annuities. 

Client-friendly presentation

Digital client presentation

Inform clients about fixed index annuities and where they might fit. 
Download PDF
Client-friendly flyer

Common myths debunked

We've debunked 4 common myths we hear about fixed index annuities.

Download flyer
Client-friendly flyer

Financial risk comparison 

See how FIAs stack up in terms of potential risk.

Download flyer
Agent kit

Case for FIAs briefcase

Get the full kit, which includes a spiral-bound client presentation.
Request physical kit