Who's Who In An FIA?

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What is a Fixed Indexed Annuity?

To begin, a fixed indexed annuity (or FIA) is a contract, between you and an insurance company. The contract outlines the details of the agreement between you and the insurance company. The contract confirms the terms of the annuity, including the rights and responsibilities each party has. It also highlights how long your money needs to stay in the annuity, and when it can be taken out.


It’s possible to gain an income for life using certain annuity products. For example, an FIA may give you a reasonable rate of return** over time, with the added benefit of protecting your principal amount. FIAs are usually a good financial strategy for retirees who look for safety of principal. 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 an insurance professional, like Creations Financial Group.

Who's Who in an FIA?

Four roles exist when it comes to annuity contracts like FIAs. It’s also important to note that having an insurance professional to help you understand annuities. These are the roles within the annuity process:

The insurance company that issues the annuity.

The person who puts money into the annuity. (So, you, if you decide to purchase one.)

The person who receives the payout from the annuity once the distribution phase begins. (Most likely also you, the Contract Owner.)

The people who receive a death benefit after the annuitant dies.

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Do Annuities Come With Death Benefit?

Certain annuities do offer a death benefit to your spouse or other beneficiaries. There are lots of options available to you when it comes to death benefits. You may decide to have your spouse paid the entire death benefit when you pass away. Instead, you might want them to receive regular payments.

Whichever option you choose, be sure that you understand the specifics of your annuity contract. At Creations Financial, we’re happy to answer any questions you have about how this and other features of annuities work.

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