Fixed Indexed Annuity (FIA)
An FIA is contract with an insurance company. The contract term can be anywhere from 5 to 10 years. During that time,
the interest rate that is credited to the contract each year is determined by the movement of a pre-selected market index.
If the index is negative, your contract value stays level. If the index is positive, your contract is credited with a part
of the index increase.
AT NO TIME ARE YOUR FUNDS INVESTED IN THE MARKET OR IN THE INDEX. THE INDEX IS SIMPLY USED AS A GAUGE.
You should consider this type of annuity if you desire the possibility that if the index rises that the interest credited to this account
might be greater than the interest credited under a Single Premium Deferred annuity (SPDA) (See the previous page.)
If you cancel the contract before the end of the term, a charge will occur. Typically the charge decreases for each year that you hold
the contract. During the term of the contract, you may access a certain percent of the contract value without a charge. You also have the
option of turning your account value into a stream of guaranteed income payments (See Start Guaranteed Income Now), without incurring a charge.
After the contract period has expired, you could leave your funds on deposit and earn interest or you could remove any or all of your
funds without charge.
So as not to incur a charge and to help your account to grow, the amount that you deposit into this kind of contract should be an amount
that you do not plan to access during the contract period.
For more information on Fixed Index Annuities, take a look at the Growth Now, Income Later section of the the Additional Information & Resources page.
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