Who's Who in a Fixed Indexed Annuity

A fixed indexed annuity, or FIA, is a contract between you and an insurance company.

You can actually gain a lot by understanding how they work. This agreement goes over the specifics of the annuity insurance product you purchased. It also goes confirms the terms of your annuity. The terms include the right and responsibilities of each party, how long the money needs to stay in the annuity in order to increase, and when that money can be paid out. It’s important to note that you should have an insurance professional on your side who completely understands annuities. That said, this is fixed indexed annuities explained.

Fixed Indexed Annuities Explained: The Roles

Basically, there are 4 roles in annuity contracts such as FIAs. These 4 parties are:

The Insurance Company

This is the company that issues the annuity. They're the ones responsible for backing the guarantees of the annuity and protecting your principal.

The Contract Owner

The contract owner and the annuitant are typically the same people. But they are different sometimes. The contact owner is the person who makes decisions about the annuity, such as who the beneficiary or beneficiaries are.


The annuitant is the person whose life expectancy is used to calculate the annuity payment. They're typically also the contract owner, but there are cases where they're a different person.


When you die, your beneficiaries are the ones who receive your death benefit. It's important to name at least one beneficiary because without one the money in your annuity is subject to probate.

More Details Regarding

Fixed Indexed Annuities

In your contract, the life insurance company will explain all your annuity details. For instance, your contract will specify which type of annuity you have, whether it be an FIA, fixed annuity, or variable annuity. In addition, the contract will lay out terms and time periods. For example, the time period for which your annuity can grow without withdrawing money. There aren’t many options that can work in your favor, though, if you need to access your money sooner. It’s important to note that a surrender period exists for every annuity, meaning early withdrawal during that period of time will result in a fee or surrender charge.

There are a lot of options available when it involves annuities. This is why it’s important to speak to a professional, like our team here at Safe Harbor, when you need fixed indexed annuities explained.

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