Defined terms for the annuity market and lifetime income landscape.
A fixed account is the component of an annuity contract that credits a declared interest rate, supported by the assets of the insurer's general account, available within indexed annuities and variable annuities as one of the available crediting choices alongside index-linked or subaccount options.
A fixed annuity is an insurance contract under which the insurer guarantees the principal and a specified or formula-determined interest crediting rate, with values not subject to direct market fluctuation, structured either as an accumulation arrangement or as an income arrangement.
A fixed indexed annuity (FIA) is a deferred fixed annuity in which the crediting rate is determined by a formula tied to the performance of a specified market index, subject to caps, participation rates, and spreads set by the insurer, with principal protected from direct market loss.
