Fixed Indexed Annuity

If you are looking for protection with the opportunity to earn a substantial amount of money through a rate of return tied to the market, a fixed indexed annuity could be a great investment option. A fixed indexed annuity is not directly invested into the stock market and instead returns are based on the performance of an underlying index.

This fixed indexed annuity is a long-term investment that allows assets to grow tax-deferred. As an addition to your fixed indexed annuity, an optional guaranteed lifetime withdrawal benefit provides a guaranteed retirement paycheck for you and your spouse that grows each year that income is deferred, for up to 10 years. This was created to aid you and your family in covering living expenses during retirement.

What are the benefits of a fixed indexed annuity?

Tax Deferral

The tax-deferred status of a fixed indexed annuity allows you to benefit from compounded growth.

Lifetime Income

A rider is often available to guarantee payments regardless of how long you or your spouse live. You may also get lifetime income through annuitization, which comes at no additional cost.

Earning Credited

At the end of a term, earnings are credited. Once earnings are credited, earnings may be affected by any negative index performance. However, earnings may be limited by a policy’s cap rates or spread.

Principal Protection

When you invest in a fixed indexed annuity, your original deposit never declines if the index performs negatively. However, all guarantees are subject to the issuing insurance company.

Beneficiary Protection

When you have a fixed indexed annuity, you can pass assets to beneficiaries designated by your will, which helps avoid costly probate. Optional riders, an addition to the fixed indexed annuity, are available to enhance the amount beneficiaries may receive.

Opportunities for Spouses

Most insurance agencies allow spousal continuation of the fixed indexed annuity upon a spouse’s death and pay a death benefit only after the passing of the second spouse. However, some policies provide a joint option that covers the death of either spouse after the first one’s passing.


Your fixed indexed annuity is able to reach its growth potential through the performance of the index, through a fixed interest rate, or a combination. At Care Financial, we assist in finding the combination that is right for you, so you and your family receive maximum benefits from the fixed indexed annuity.

What other factors should you consider?

A fixed indexed annuity may have charges on an early withdrawal depending on the period of the policy or the cancellation of the policy. Some contracts concerning a fixed indexed annuity may impose market value adjustments if a withdrawal is made during a guaranteed period offered in the policy. Typically, any withdrawals during an initial guaranteed period that exceed ten percent of the account’s value are subject to withdrawal charges.

Any withdrawals made from a fixed indexed annuity reduce the value of the annuity and may be subject to income tax. Withdrawals made before age 59 ½ may cause the owner of the annuity to pay a ten percent federal tax penalty as well.

If you are interested in purchasing a fixed indexed annuity, our advisors at Care Financial will be able to assist you as you go about purchasing the annuity as well as advise you on other potential options. Our financial advisors take the time to learn what is important to you in order to provide you with the best financial advice one can offer. To receive more information about fixed indexed annuities and discover if this plan is right for you, call Care Financial today and talk to one of our trusted advisors. Together, we will make sure you and your family are prepared for the future!