The 12 questions
- Which insurance company issues the contract?
- How long is the surrender-charge period?
- How much can I withdraw each year without a surrender charge?
- Which index or indexes are available?
- How is interest credited?
- Is there a cap, participation rate, spread, or other limit?
- Can those crediting terms change after the contract is issued?
- Is there an optional income rider?
- What does that rider cost?
- What is guaranteed, and what is not?
- What happens if I need substantially more money than expected?
- How does this contract fit with the rest of my retirement assets?
Read the contract, not just the illustration.An illustration can help explain how a product works, but the actual contract controls the terms.
Why these questions matter
Fixed indexed annuities can be useful in some retirement situations, but they are not interchangeable. Crediting methods, surrender periods, withdrawal provisions, income features, and insurer guarantees can differ substantially.