Question 1

What is a fixed indexed annuity?

Accepted Answer

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.

Question 2

What is a MYGA annuity?

Accepted Answer

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.

Question 3

What are current MYGA rates?

Accepted Answer

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.

Question 4

How does an income rider work?

Accepted Answer

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.

The 2026 Consumer Guide to Fixed & Indexed Annuities

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Inside the Guide

What You'll Learn

Section 1: What Is an Annuity?

Section 2: Types of Annuities Compared

Section 3: How Lifetime Income Riders Work

Section 4: Common Questions Answered