What's An FIA?

When it comes to your legacy and retirement, we can show you how FIA’s work.

What's An FIA?

An FIA is a fixed index annuity. As an insurance product, an FIA is not an investment, per se. Instead, it is an agreement issued by an insurance company and signed by the owner of the annuity. Each contract has its own criteria and terms. For example, certain rights and responsibilities of both the annuitant (that’s the policy holder) and the insurance company will appear in the contract. The insurance company has language in the contract that protects* your principal from loss. In addition, it may outline ways you may receive income from your annuity, backed by the claims-paying ability of the insurance carrier.

The FIA contract usually indicates how and when you may access money in the form of payments (income). For some retirees, an FIA may provide a way to give them income for the rest of their lives, backed by the claims-paying ability of the insurance company. Also, the principal stays safe with this agreement as well. So, what does an FIA have to do with retirement? In a word: safety. Total Financial Solutions can show you how an FIA works.

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What's An FIA Annuitant?

The annuitant of a fixed index annuity (FIA) is the one who receives the payout amounts. If you are planning to get income from your FIA, then the annuitant is you. There are other “roles” involved, as well. First, a licensed insurance advisor, such as Arif M. Halaby, may offer you some guidance regarding these types of annuities. In addition, other labels you’ll see when it comes to an FIA are:

Discover: What's An FIA?

Your annuity contract holds the information about your FIA. For instance, which type of annuity do you have? What are the specific benefits and terms of your contract? Although other types of annuities exist (such as a fixed annuity and a variable annuity), FIAs have certain advantages. These include the ability to potentially see an increase in indexed interest without losing your principal when the index is down.

Do you see language in your contract about a “surrender period”? Specifically, this tells you the time period that you’ll need to let your money stay in the annuity before you begin payments or withdrawals. Usually, you have choices in terms of how long you want the surrender period to be. However, all FIA contracts will have some degree of an accumulation phase requirement. Be sure to connect with us to discover what some of your options might be.

What You Leave Behind

What’s an FIA when it comes to your legacy? In fact, FIAs usually offer a death benefit as well as income during your lifetime. In addition, if you want your spouse to also have income from the annuity after you pass away, that may be possible as well. You may have choices when it comes to when and how your family accesses your death benefits. For example, some people choose a lump sum. Others decide to take that money over time. There are terms and conditions for any choices you make within an annuity. So, be sure to connect with us to learn the specifics that may apply to you.

Total Financial Solutions is here for you so you can be there for your loved ones.
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Now or Later?

In addition to benefits you may decide to leave to loved ones, an FIA may provide income during retirement as well. Typically, there is a certain percentage of your money available for withdrawal each year. Of course, this withdrawal should happen after your accumulation phase in order to avoid penalty. But, some of your money may be accessible sooner in certain emergency circumstances. Also, some retirees may choose to hold off on any income as a way to have potential indexed interest applied to a larger account amount.

Your retirement should be all about your choices. Contact us today to learn more about insurance and annuities concepts that may help you make those choices.

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