Fixed Indexed Annuities
Fixed Indexed Annuities (FIAs) are a type of financial product that falls under the broader category of annuities. Annuities are financial contracts typically offered by insurance companies as a way to provide a steady stream of income to individuals during their retirement years. Fixed indexed annuities combine features of both fixed annuities and variable annuities, offering a unique balance between safety and potential growth.
Base Benefit Plan
An income annuity is a contract between an individual and an insurance company. The annuitant invests a lump sum of money in exchange for a series of regular payments, which can be structured to last for the annuitant’s lifetime, a fixed period, or a combination of both. The primary purpose of an income annuity is to provide a reliable income stream, especially during retirement, when individuals are no longer earning a regular salary.