Fixed Index Annuities

At AVZ Benefit Solutions, we believe that everyone should have the retirement they so desire, whatever that may be. In our opinion, Fixed Index Annuities are a great way to help you achieve your retirement goals!

You can take advantage of:

Potential interest during the annuity’s accumulation phase: During this initial phase, an annuity may be an appropriate vehicle to help you accumulate money for your retirement.

Guaranteed income for life and other options during the retirement income phase: When you are ready to start taking income, the annuity offers you a range of payout options. Some options may offer a single payment, while others may include income payments scheduled over a specific period of time, including your entire lifetime.

Guarantees for your contract values: If you surrender your contract, you are guaranteed to receive at least a minimum value.

Tax deferral that can help your money grow: The money in your annuity can grow tax-deferred. This means you don’t have to pay taxes until you begin to withdraw money from the annuity. (Any money taken from your annuity is be subject to income taxes and, if taken prior to age 59 1/2, a 10% federal tax penalty.)

Guaranteed death benefit protection for your beneficiaries: Annuities are insurance products, so it is only natural that they can give you reassurance.

Fixed Index Annuities are different:

A fixed index annuity has the potential to earn interest each year based on changes in an external index. This is different from traditional fixed annuities, which credit interest calculated at a fixed rate set in the contract. The selected index varies from day to day and is not predictable. When you buy a fixed index annuity, you own an insurance contract–you are not buying shares of an index fund, or any stock or bond investments. Many fixed index annuities also permit contract owners to also allocate premiums to a traditional fixed interest option, where interest is credited at a fixed rate of interest, not based on any external index


Here is an example of how an Fixed Index Annuity can earn interest – note that when the market index goes up, the annuity has the opportunity to receive interest for that year. In years when the index declines in value, however, you are guaranteed not to lose value because the annuity is protected by a floor, which means you never experience a loss due to market risk.


These figures represent a hypothetical FIA and the S&P 500 index, using the monthly sum crediting method, a 2% monthly cap, and a 100% participation rate. The guaranteed value represents a minimum annual interest rate of 1.5%.

The S&P 500 figures represent past performance only which may not be used to predict or project future results. No one crediting method provides the best results in every market scenario and your actual results will vary.

Annuity guarantees rely on the financial strength and claims-paying ability of the insuring company. Annuity involve fees and expenses, including surrender charges for early withdrawals. Fixed Index Annuities are subject to caps, spreads and/or participation rates which will reduce the amount of interest earned.