Who's Who In an FIA?
An FIA offers secure income and peace of mind, with flexible benefits. Let Mundt and Associates help you maximize your retirement plan.
Who's Who In a Fixed Indexed Annuity?
An FIA (fixed indexed annuity) is a contract between an individual (you, if you choose to purchase one) and an insurance company. The contract describes the specifics of your agreement and outlines the terms, including each party’s rights and obligations. It also indicates when you can withdraw your money and how often you will receive payments. So, it’s important to know: who’s who in a fixed indexed annuity contract?
Who's Who in a Fixed Indexed Annuity?
There are three (sometimes four) different parties are involved in an FIA contract. These roles include:
The insurance company that issues the annuity and backs its claims
The contract owner, who purchases and contributes the money to the annuity (this would be you)
The annuitant, who receives the payout from the annuity (this would likely also be you–the contract owner and the annuitant are typically the same person, but not always)
The beneficiaries, who may receive a death benefit from the annuity when the annuitant passes away
Do Annuities Come With a Death Benefit?
Your spouse or other beneficiaries may receive a death benefit from your annuity contract. You have a wide range of options when it comes to death benefits. You may want your spouse to receive the death benefit as one lump sum, or as a series of regular payments. Regardless of the options you select, make sure you understand all the details of the annuity contract. If you have any questions regarding this, or any other aspect of how a fixed indexed annuity work, we’d be happy to talk you through it.
