What is a fixed indexed annuity?

A fixed indexed annuity (FIA) is an insurance product that credits interest based on the performance of a market index, such as the S&P 500, up to a cap rate or participation rate. The principal is protected from market losses — in years when the index declines, your credited rate is 0%, not negative. FIAs are designed for consumers who want market-linked growth potential with downside protection.

What is a MYGA annuity?

A Multi-Year Guaranteed Annuity (MYGA) is a fixed annuity that guarantees a set interest rate for a specified term, typically 2–10 years. It is similar to a bank CD but with tax-deferred growth and typically higher rates. MYGAs are often used as a CD alternative by retirees seeking safe, predictable growth.

What are current MYGA rates?

As of April 2026, top MYGA rates from A-rated carriers range from approximately 5.30% for 2-year terms to 6.10% for 7-year terms. Rates vary by carrier, state, and premium amount. Visit our Current Annuity Rates page for the latest representative rates.

How does an income rider work?

An income rider is an optional benefit added to a fixed indexed annuity that guarantees a lifetime income stream. The rider typically includes a 'benefit base' that grows at a guaranteed roll-up rate (often 5–8% per year) during the deferral period. When you activate income, the carrier calculates your monthly payment based on the benefit base, your age, and the payout rate — and guarantees that payment for life, regardless of account value.

Annuity vs. the 4% Rule: Which Retirement Strategy Is Safer?

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