A fixed annuity pays a set interest rate for a set period, predictable and simple. A fixed indexed annuity's growth is linked to a market index like the S&P 500, with a floor that protects your principal from losses while allowing for higher potential growth than a traditional fixed rate. Both protect your principal from market downturns.
| Fixed Annuity | Fixed Indexed Annuity | |
|---|---|---|
| Growth | Set interest rate | Linked to a market index, with a cap |
| Principal protection | Yes | Yes |
| Growth potential | Lower, but guaranteed | Higher ceiling, not guaranteed |
| Complexity | Simple | More moving parts (caps, participation rates) |
| Best for | Predictable, simple growth | Upside potential without market risk |
Guy Jean is licensed to sell fixed and fixed indexed annuities, not variable annuities. Variable annuities are securities products that require a FINRA Series 6 or 7 license in addition to a state insurance license. If a variable annuity turns out to be the better fit for you, Guy will refer you to a properly licensed securities professional.
A fixed indexed annuity has a higher growth ceiling because it's linked to a market index with a cap, but the actual credited rate varies year to year and could be 0% in a flat or down market. A fixed annuity's rate is set and guaranteed for its term, lower but predictable.
No. Both fixed and fixed indexed annuities protect your original premium from market losses. Surrender charges can apply if you withdraw more than the allowed amount during the surrender period.
Guy Jean is licensed to sell fixed and fixed indexed annuities, not variable annuities. Variable annuities are securities products that require a FINRA Series 6 or 7 license in addition to a state insurance license. If a variable annuity turns out to be the better fit for you, Guy will refer you to a properly licensed securities professional.
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