What Is a Fixed Index Annuity?
A fixed index annuity (FIA) is an insurance contract that earns interest based on the performance of a market index like the S&P 500, without directly investing in the market. Your principal is protected by a 0% floor, meaning you never lose money due to index declines. In exchange for that protection, your upside is limited by caps, participation rates, or spreads set by the carrier. FIAs are designed for conservative investors, typically age 50 and older, who want more growth potential than a MYGA or CD but cannot afford to lose principal. Most contracts run 7 to 10 years and include optional income riders that guarantee lifetime withdrawal benefits regardless of market performance. The company you choose matters as much as the product itself. Each carrier sets its own participation rates, index options, renewal policies, and rider designs. Two FIAs with identical surrender periods can produce vastly different outcomes over 10 years depending on the issuing company's crediting philosophy and financial strength.Top 10 Fixed Index Annuity Companies by Sales (2025)
| Rank | Carrier | 2025 FIA Sales |
|---|---|---|
| 1 | Athene Annuity & Life | $15.0 billion |
| 2 | Allianz Life of North America | $11.7 billion |
| 3 | Corebridge Financial | $10.0 billion |
| 4 | Sammons Financial Companies | $9.5 billion |
| 5 | American Equity Investment Life | $7.2 billion |
| 6 | Fidelity & Guaranty Life | $6.6 billion |
| 7 | Nationwide | $6.1 billion |
| 8 | Global Atlantic Financial Group | $5.7 billion |
| 9 | Delaware Life | $5.6 billion |
| 10 | Security Benefit Life | $5.0 billion |
Source: LIMRA Secure Retirement Institute, 2025 U.S. Individual Fixed Index Annuity Sales Results. Sales figures rounded to nearest $100M.
Best Fixed Index Annuity by Category
Not every carrier excels in every area. Here are our picks for the best FIA company in each category based on current product offerings, rates, and real-world client outcomes.| Category | Our Pick | Why |
|---|---|---|
| Best Overall | Athene | Highest participation rates in the industry, broadest index menu, and consistent renewal rate integrity. #1 in FIA sales for 2025. |
| Best for Income | Allianz Life | Industry-leading GLWB riders with increasing income options and competitive withdrawal rates across all age brackets. Option to choose joint or single life income when income begins, not at issue. Strong track record for income-focused FIA design. |
| Best for Accumulation | Athene | Fee-based strategies with participation rates up to 335% and backtested returns above 12% on select indexes. Purpose-built for long-term growth. |
| Best Financial Strength | MassMutual Ascend | A++ AM Best rating, the highest available from AM Best. 98 Comdex score. Backed by Massachusetts Mutual Life Insurance Company, a 170+ year old mutual company. |
| Best Cap Rates | Nationwide | Consistently competitive S&P 500 cap rates and performance trigger rates. Return of premium option available on select products. |
| Best for Beginners | MassMutual Ascend | Simple, straightforward product designs with A++ AM Best rating (highest possible). WealthChoice products offer clear crediting strategies tied to familiar indexes like the S&P 500 and SPDR Gold, without complex fee layers or proprietary indexes. |
Category picks reflect our editorial assessment as of March 2026. Your best choice depends on your individual goals, time horizon, and risk tolerance. Request a personalized quote for recommendations specific to your situation.
When selecting a fixed index annuity, it is a good idea to choose a company that offers multiple good index annuity crediting options. Index annuity crediting rates change on an annual basis, and each year at your anniversary you will have 30 days to review the renewal rates for each index available. These rates are priced based on the cost of options, which is determined primarily by volatility. So it is likely that rates among indexes will fluctuate throughout your contract, which is why it is nice to have many good options to choose from.Top FIA Products by Category (2026)
These are the specific fixed index annuity products we recommend most frequently based on current rates, rider designs, and client feedback. Product availability varies by state.
Best for Accumulation: Athene Aviator 5
Issuer: Athene Annuity & Life
AM Best: A+ (Superior)
Surrender Period: 5 years
Minimum Premium: $10,000
Free Withdrawals: 10% annually
Maximum Premium: $1,000,000
Current Rates: S&P 500 annual cap 9.25% | BofA Multi-Asset FC 7 at 115% participation | Invesco QQQ FC 7 at 115% participation
Short 5-year surrender with strong uncapped participation rates on proprietary indexes. Daily value tracking and a mid-year index lock option let you capture gains before the crediting period ends. The Diversified Blend Strategy automates allocation across multiple indexes for hands-off growth.
Read Full Review →Best for ETF-Linked Growth: F&G Power Accumulator
Issuer: Fidelity & Guaranty Life
AM Best: A (Excellent)
Surrender Period: 7 or 10 years
Minimum Premium: $10,000
Free Withdrawals: 10% annually (Year 2+)
Fixed Account: 3.75% guaranteed
Current Rates: Balanced Asset 5 Index at 170% participation | BlackRock Market Advantage at 135% participation | iShares S&P 500 (IVV) 7.25% cap | Morgan Stanley US Equity at 75% participation
One of the only FIAs offering direct ETF-linked crediting through BlackRock iShares benchmarks, including S&P 500, gold, real estate, and international developed markets. The 170% participation rate on Balanced Asset 5 is among the highest available without a fee-based strategy. Nursing home and terminal illness waivers included.
Read Full Review →Best for Income: Corebridge Power 10 Protector Plus
Issuer: Corebridge Financial (AIG)
AM Best: A (Excellent)
Surrender Period: 10 years
Minimum Premium: $25,000
Issue Ages: 50-75
Free Withdrawals: 10% or income amount (whichever is greater)
Current Rates: S&P 500 annual cap 4.9% | Lifetime Income Choice rider included (1.10% annual fee) | 9% simple roll-up on income base
Built for income-first buyers. The included Lifetime Income Choice rider carries a 9% simple roll-up, among the highest in the market, with automatic activation at age 65. Free withdrawals are the greater of 10% or your annual income amount, giving you flexibility. The trade-off is a lower S&P 500 cap since the product is optimized for income, not accumulation.
Read Full Review →Best Dual-Strategy Design: Nationwide Peak 10
Issuer: Nationwide Life & Annuity
AM Best: A+ (Superior)
Surrender Period: 10 years
Issue Ages: Annuitant up to 85
Free Withdrawals: 10% annually (RMDs penalty-free)
Income Rider: Bonus Income+ (1.00% fee)
Current Rates: BNPP Global H-Factor 2-Year PTP at 295% participation (1% spread) | S&P 500 annual cap 6.25% | Income rider: 25% first-year bonus + 8% simple roll-up
Pairs a 295% participation rate on the volatility-managed BNPP Global H-Factor index with a traditional S&P 500 cap strategy in a single contract. The Bonus Income+ rider adds a 25% first-year income base bonus and 8% simple roll-up for clients who want both growth and future income. RMDs are penalty-free even if they exceed the 10% free withdrawal.
Read Full Review →Product details and rates current as of March 2026. Rates are subject to change at each contract anniversary. Request a personalized quote for current illustrations based on your age and state.
Detailed Company Rankings
1
Athene Annuity & Life
AM Best: A (Excellent)
- Industry-leading participation rates on uncapped strategies, often exceeding 200%
- Broadest index menu in the FIA market: S&P 500, PIMCO Tactical Balanced, Nasdaq FC, AI Powered Global Opportunities
- Backed by Apollo Global Management with over $300 billion in assets
- Consistent renewal rate integrity with minimal mid-term adjustments
2
Allianz Life of North America
AM Best: A+ (Superior)
- Among the strongest income rider options in the FIA market
- Popular products with both accumulation and income-focused designs
- Strong consumer brand and financial strength with decades of FIA experience
- Streamlined e-application process and fast issue times
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3
Corebridge Financial
AM Best: A (Excellent)
- Legacy from AIG Life & Retirement with broad market reach across all distribution channels
- Strong MYGA and FIA lineup with competitive crediting strategies
- Modern e-app and processing workflows for fast policy issue
- Proprietary indexes including Merrill Lynch Strategic Balanced and AQR DynamiQ
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4
Sammons Financial Companies
AM Best: A+ (Superior)
- Parent of North American Company and Midland National, two major FIA issuers
- Competitive MYGA and fixed index annuity lineup with flexible allocation options
- Founded in 1886, one of the longest-operating insurance groups in the U.S.
- Strong income rider options through North American's BenefitSolutions products
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5
American Equity Investment Life
AM Best: A- (Excellent)
- One of the largest pure-play FIA carriers in the United States
- 7 different fixed index annuity products covering accumulation and income needs
- Competitive lifetime income rider payouts across multiple age brackets
- Founded in 1995, now part of Brookfield Reinsurance
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6
Fidelity & Guaranty Life (F&G)
AM Best: A (Excellent)
- Part of Fidelity National Financial, bringing strong financial backing
- Innovative ETF-linked and volatility-controlled crediting strategies
- Competitive accumulation-focused FIAs with the Power Accumulator series
- Modern digital experience and fast application processing
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7
Nationwide
AM Best: A+ (Superior)
- Top lifetime income payouts at many age brackets among all FIA carriers
- Strong consumer brand recognition and trust
- Unique index crediting options including stacked strategy flexibility
- Return of premium features available on select products
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8
Global Atlantic Financial Group
AM Best: A (Excellent)
- Backed by KKR, one of the world's largest alternative asset managers
- Competitive lifetime income riders on ForeSight FIA products
- Offers SPIAs, MYGAs, and fixed index annuities across distribution
- Client-friendly website and educational resources for policyholders
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9
Delaware Life
AM Best: A- (Excellent)
- Strong accumulation-focused FIAs with competitive 2-year point-to-point strategies
- Guaranteed Income Solution included at no additional cost on select products
- High participation rates on proprietary indexes (AB Growth & Value, J.P. Morgan Cycle)
- Available in most states (except CA, DE, NY on some products)
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10
Security Benefit Life
AM Best: A (Excellent)
- Offers SPIAs, MYGAs, variable annuities, and fixed index annuities
- Index crediting options with strong historical back-tested performance
- Four different income rider options for flexible retirement income planning
- Competitive uncapped S&P 500 strategies
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Top Performing Index Strategies by Carrier
Backtested hypothetical performance of the top 5 index strategies for each carrier, based on current participation rates, caps, and spreads applied to historical index data. Illustrations sourced from Annuities Genius as of 3/29/2026. All returns shown are annualized. Past hypothetical performance does not guarantee future results.
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Nasdaq FC PTP | Accumulator 10 | 130% part | 12.55% | 11.37% | 10.69% |
| Nasdaq FC PTP | Protector 7 | 125% part | 12.09% | 10.96% | 10.30% |
| Nasdaq FC PTP | Protector 7 w/ MIC+ROP | 125% part, 0.4% fee | 12.09% | 10.96% | 10.30% |
| Nasdaq FC PTP | Protector 7 w/ MIC | 125% part, 0.2% fee | 12.09% | 10.96% | 10.30% |
| Nasdaq FC PTP | Protector 5 w/ MIC+ROP | 125% part, 0.4% fee | 12.09% | 10.96% | 10.30% |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| S&P 500 Futures ER PTP | Accum Advantage 7 | 50% part, Index lock | 7.63% | -- | -- |
| S&P 500 Futures ER PTP | 222+ Annuity | 45% part, Index lock | 6.88% | -- | -- |
| PIMCO Tactical Balanced ER PTP | Accum Advantage 10 | 130% part, Index lock | 6.57% | 6.08% | 6.46% |
| Bloomberg US Dynamic Balance III ER PTP | Accum Advantage 7 | 125% part, Index lock | 6.36% | -- | -- |
| S&P 500 PTP Cap | Accum Advantage 7 | Cap: 8% | 6.35% | 5.81% | 5.72% |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Invesco New Economy PTP | Power Select Advisory | 60% part, No surrender | 13.48% | 15.26% | 7.72% |
| Invesco New Economy PTP | Power Select Builder 10 | 55% part | 12.40% | 14.06% | 7.72% |
| Dimensional US Foundations PTP | Power Select Advisory | 190% part, No surrender | 9.28% | 11.23% | 12.26% |
| S&P 500 PTP | Power Index Advisory | 55% part, No surrender | 8.93% | 7.88% | 7.35% |
| Invesco New Economy PTP | Power Select Advisory w/ LI Plus Flex | 38% part, 1.1% fee | 8.68% | 9.90% | 7.72% |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Barclays Transitions 12 VC PTP | NAC Control X 10yr | 65% part | 9.92% | 9.55% | 8.93% |
| Barclays Transitions 6 VC PTP | NAC Control X 10yr | 120% part | 8.67% | 8.39% | 7.87% |
| S&P 500 Dynamic Intraday TCA PTP Cap | Max Elite Accum 5 w/ Enhanced Benefits | Cap: 12%, 0.4% fee | 8.45% | -- | -- |
| S&P 500 Dynamic Intraday TCA PTP Cap | Max Elite Accumulation 5 | Cap: 12% | 8.45% | -- | -- |
| S&P 500 Dynamic Intraday TCA PTP Cap | Max Elite Accum 7 w/ Enhanced Benefits | Cap: 11.75%, 0.4% fee | 8.30% | -- | -- |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Nasdaq Premier PTP | AssetShield 10 | 60% part | 10.48% | 10.16% | 9.60% |
| Nasdaq Premier PTP | AssetShield 7 | 60% part | 10.48% | 10.16% | 9.60% |
| Nasdaq Premier PTP | AssetShield Bonus 5 Opt 1 | 58% part, 3% bonus | 10.15% | 9.83% | 9.29% |
| Nasdaq Premier PTP | IncomeShield 10 | 56% part, 1.2% fee | 9.81% | 9.51% | 8.98% |
| Nasdaq Premier PTP | AssetShield 5 | 55% part | 9.64% | 9.34% | 8.82% |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| MS US Equity Allocator PTP w/ Spread | Power Accumulator 10 | 80% (100% min) part | 9.76% | 8.68% | 8.10% |
| MS US Equity Allocator PTP w/ Spread | Accumulator Plus 10 | 75% part | 9.17% | 8.16% | 7.61% |
| MS US Equity Allocator PTP w/ Spread | Power Accumulator 7 | 75% (100% min) part | 9.17% | 8.16% | 7.61% |
| S&P 500 PTP | Secure Landing 7 | 55% part, 0.4% fee | 9.01% | 7.93% | 7.34% |
| MS US Equity Allocator PTP w/ Spread | Accelerator Plus 10 | 70% part, 10% bonus, 0.95% fee | 8.58% | 7.63% | 7.11% |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 10 (Variation States) | 60% part, Index lock | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 8 w/ HP Select EDBR w/ Bonus | 60% part, 3% bonus, 0.8% fee | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 9 w/ HP Select EDBR w/ Bonus (VS) | 60% part, 4% bonus, 0.8% fee | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 10 w/ HP Select EDBR w/ Bonus (VS) | 60% part, 3% bonus, 0.8% fee | 6.40% | 5.85% | 7.01% |
| Loomis Sayles Discovery Bal Alloc PTP Opt B | New Heights Select 8 | 60% part, Index lock | 6.40% | 5.85% | 7.01% |
| Strategy | Product | Participation/Cap | 10yr Return | 15yr | 20yr |
|---|---|---|---|---|---|
| MS Inflation Aware PTP EAS | Choice Accum II Edge 10 | 100% part, 10yr lock | 10.19% | 10.93% | -- |
| MS Inflation Aware PTP EAS | Choice Accum II Edge 5 | 100% part, 5yr lock | 10.19% | 10.93% | -- |
| MS Inflation Aware PTP EAS | Choice Accum II Edge 7 | 100% part, 7yr lock | 10.19% | 10.93% | -- |
| JP Morgan Cross-Asset Strategy PTP | ForeAccum II 5 Advisory w/ Enhanced DB | 145% part, 1.2% fee | 9.56% | 10.69% | 11.15% |
| JP Morgan Cross-Asset Strategy PTP | ForeAccum II 5 Advisory | 145% part | 9.56% | 10.69% | 11.15% |
Hypothetical backtested performance only. Returns shown are annualized rates of return based on current participation rates, caps, and spreads applied to historical index data. They do not reflect actual policyholder returns and do not guarantee future performance. All rates are subject to change. Rider fees reduce accumulation value. Data sourced from Annuities Genius illustration system as of March 29, 2026. Illustrations based on a 63-year-old male, $100,000 IRA premium. Delaware Life and Security Benefit do not publish comparable illustration data.
View our detailed index reviews: Nasdaq FC | BNP Paribas Multi-Asset | Bloomberg US Dynamic Balance II | PIMCO Tactical Balanced ER
Current Fixed Index Annuity Cap Rates
The widget below shows today's top 10 fixed index annuity cap rates, updated in real time. Cap rates determine the maximum interest you can earn in each crediting period using an annual point-to-point strategy.View complete FIA rate comparison with all carriers and crediting strategies →
Financial Strength Ratings: Top 10 FIA Carriers
Financial strength matters because annuity guarantees are only as strong as the insurance company backing them. The table below shows the AM Best rating and Comdex composite score for each of the top 10 FIA carriers by sales. NAIC recommends verifying carrier ratings before purchasing any annuity product.| Carrier | AM Best | Comdex Score |
|---|---|---|
| Allianz Life | A+ (Superior) | 96 |
| Nationwide | A+ (Superior) | 90 |
| Athene | A+ (Superior) | 88 |
| Sammons (North American / Midland National) | A+ (Superior) | 88 |
| Corebridge Financial | A (Excellent) | 82 |
| Fidelity & Guaranty Life (F&G) | A (Excellent) | 79 |
| Global Atlantic | A (Excellent) | 78 |
| American Equity | A- (Excellent) | N/A |
| Delaware Life | A- (Excellent) | 56 |
| Security Benefit | A (Excellent) | 56 |
Ratings current as of November 2025. Comdex is a composite percentile ranking across all rating agencies. Powered by VitalSales Suite (Zinnia Distributor Solutions). View all 215 carrier ratings →
What Is the Best Fixed Index Annuity Right Now?
While the best fixed index annuity for you will depend on your individual goals and objectives, generally speaking, Athene, Allianz, and Corebridge (AIG) are the best fixed index annuity companies. Athene leads the market with the highest participation rates and the broadest index menu, making it the top choice for accumulation-focused buyers. Allianz offers the strongest income rider designs and carries the highest Comdex score (96) among the top 10 carriers. Corebridge brings scale, broad distribution, and a deep product suite backed by its AIG legacy. All three hold A or A+ AM Best ratings. The right FIA for you depends on whether you prioritize growth potential, guaranteed income, financial strength, or a balance of all three. Request a personalized quote to compare products from multiple carriers based on your age, state, and investment amount.Fixed Index Annuity vs MYGA vs Variable Annuity
Not sure which annuity type fits your goals? Here is a quick comparison of the three most common options.| Feature | Fixed Index (FIA) | MYGA | Variable Annuity |
|---|---|---|---|
| Risk Level | Low (0% floor) | None (guaranteed rate) | High (full market risk) |
| Return Type | Index-linked (capped or participation) | Fixed guaranteed rate | Market returns (subaccounts) |
| Annual Fees | $0 base; rider 0.75-1.25% | $0 | 2-3%+ (M&E, subaccount, rider) |
| Principal Protection | Yes (0% floor) | Yes (guaranteed) | No |
| Upside Potential | Moderate to high | Fixed (known at purchase) | Unlimited |
| Income Riders | Yes (GLWB, optional) | No | Yes (GLWB/GMIB, optional) |
| Typical Surrender | 7-10 years | 3-10 years | 5-8 years |
| Best For | Growth with protection | Safe, predictable returns | Maximum growth potential |
Compare current rates: FIA cap rates | MYGA rates | Fixed annuity vs CD
How to Choose the Right Fixed Index Annuity Company
With dozens of carriers offering fixed index annuities, narrowing your options can feel overwhelming. Focus on these five factors in order of importance.1. Check Financial Strength First
Your annuity is only as strong as the company behind it. Look for carriers rated A- or higher by AM Best. A strong Comdex score (70+) confirms that multiple rating agencies agree. All 10 companies on this list meet that threshold, but if you are considering a carrier not listed here, verify their rating before signing anything.2. Match the Product to Your Goal
Are you buying for growth, income, or both? Accumulation-focused buyers should compare participation rates and index options. Income-focused buyers should compare GLWB rider withdrawal rates at their target income age. Trying to do both in one product often means compromising on each. Know your primary objective before comparing.3. Compare Crediting Methods and Index Options
Not all crediting methods are equal. A 10% cap on the S&P 500 and a 150% participation rate on a proprietary index will produce very different results depending on market conditions. Ask for backtested illustrations on at least 2-3 index strategies before committing. Carriers with more index options give you more flexibility at each annual reset.4. Understand the Surrender Schedule
Most FIAs carry 7- to 10-year surrender periods. Make sure the timeline fits your liquidity needs. Check whether the contract includes a nursing home waiver, terminal illness waiver, or return of premium option. These features provide exit flexibility if your situation changes unexpectedly.5. Review Renewal Rate History
The rate you see today is the initial rate. What matters more is how the carrier treats renewal rates after year one. Some carriers are known for aggressive initial rates followed by steep renewals. Ask your agent for the carrier's renewal rate history on existing products. Consistency matters more than a flashy first-year number.Tip: Compare at least 3 carriers before purchasing. Request a personalized quote and we will provide side-by-side illustrations from multiple companies based on your age, state, and investment amount.
How Much Does a Fixed Index Annuity Cost?
Most fixed index annuities have no explicit annual fees on the base contract. The insurance company earns its profit through the spread between what it earns investing your premium in its general account and what it credits to your policy. This is different from variable annuities, which typically charge 2-3% per year in mortality and expense (M&E) fees plus subaccount management fees.Base Contract: Typically $0 in Annual Fees
The majority of FIA base contracts charge nothing in explicit annual fees. Your entire premium goes to work on day one. The trade-off is that the carrier controls how much upside you receive through caps, participation rates, and spreads, which is where they build in their margin.Income Riders: 0.75% to 1.25% Per Year
If you add an optional income rider (GLWB), expect an annual charge between 0.75% and 1.25% of the benefit base. This fee is deducted from your accumulation value each year. Over a 10-year deferral period, rider fees can meaningfully reduce your cash surrender value even as your income benefit base grows. Make sure you actually need guaranteed income before adding a rider.Fee-Based FIA Strategies: 1.00% to 1.50% Per Year
Fee-based FIA strategies designed for RIA (registered investment advisor) channels charge an explicit annual fee but offer significantly higher participation rates and often no surrender charges. These products are growing rapidly but require working with a fee-based advisor. The higher crediting rates generally offset the explicit fee over a full market cycle.Surrender Charges: 8-10% Declining to 0%
Early withdrawals beyond the free withdrawal provision (typically 10% per year) trigger surrender charges. These start at 8-10% in year one and decline to 0% at the end of the surrender period. This is not a "fee" in the traditional sense but rather a penalty for early exit.| Cost Component | FIA | Variable Annuity | MYGA |
|---|---|---|---|
| Base Annual Fee | $0 | 1.0-1.5% | $0 |
| M&E Charges | $0 | 1.0-1.5% | $0 |
| Income Rider (optional) | 0.75-1.25% | 0.75-1.50% | N/A |
| Surrender Period | 7-10 years | 5-8 years | 3-10 years |
| Total Annual Cost (typical) | 0-1.25% | 2.5-4.0% | $0 |
Fee ranges are industry averages. Actual costs vary by carrier and product.
How We Rank Fixed Index Annuity Companies
Our ranking framework evaluates carriers across nine weighted factors that matter most to consumers shopping for a fixed index annuity. Financial strength carries the heaviest weight because your annuity is only as secure as the company behind it. Product breadth and income competitiveness are weighted equally because most FIA buyers are either accumulating assets or planning for retirement income. We source financial ratings from NAIC data, AM Best, S&P Global, and Moody's. Sales data references are from LIMRA and Wink's Sales Reports.| Factor | Weight | What We Evaluate |
|---|---|---|
| Financial Strength | 25% | AM Best, S&P, Moody's ratings and Comdex composite scores |
| Product Breadth | 15% | Accumulation, income, and hybrid options. Diversity of crediting methods |
| Income Competitiveness | 15% | Roll-up features, payout rates by age, joint vs. single life options |
| Growth Potential | 12% | Initial rates, renewal rate integrity, historical adjustment patterns |
| Index Architecture | 10% | Proprietary vs. traditional indexes, multi-asset and ETF-linked options |
| Liquidity & Flexibility | 8% | Free withdrawal provisions, waivers, RMD-friendly treatment |
| Cost Transparency | 5% | Base fees, rider charges, and disclosure clarity in sales materials |
| Service Experience | 5% | E-app efficiency, turnaround times, and support quality |
| Innovation | 5% | Unique features, ESG crediting options, simplified processes |
Disclaimer: No ranking system can predict future insurer performance. This framework is educational and should not be treated as individualized financial advice. Always consult a licensed insurance professional before purchasing an annuity.
Browse Fixed Index Annuity Carrier Reviews
We publish detailed reviews of every major FIA carrier in the U.S. market. Each review covers financial strength ratings, product lineups, pros and cons, and who the carrier is best suited for. Select a carrier below to read the full review.Frequently Asked Questions
What is the best fixed index annuity company?
There is no single "best" company for every buyer. Athene leads for accumulation-focused strategies with the highest participation rates and broadest index menu. Allianz Life is the strongest choice for income riders and lifetime withdrawal benefits. MassMutual Ascend carries the highest financial strength rating (A++ from AM Best) for clients who prioritize carrier safety above all else. The right company depends on whether your primary goal is growth, income, or security.Are fixed index annuities safe?
Yes. Your principal is protected by a 0% floor, meaning your account value cannot decrease due to index losses in any crediting period. This protection is backed by the financial strength of the issuing insurance carrier and further supported by your state's guaranty association. That said, "safe" does not mean "risk-free." Rider fees can reduce your accumulation value over time, and early withdrawals may trigger surrender charges.How much do fixed index annuities cost?
Most FIA base contracts carry no explicit annual fees. The insurance company earns its margin through the spread between what it earns on its general account and what it credits to your policy. If you add an income rider, expect an annual charge of 0.75% to 1.25% of your benefit base. Fee-based FIA strategies designed for RIA channels typically charge 1.00% to 1.50% annually but offer higher participation rates and no surrender charges in return.What is the average return on a fixed index annuity?
Backtested and historical returns on FIAs typically fall in the 4% to 10% annual range, depending on the index, crediting method, and market conditions during the policy term. These returns are not guaranteed. Actual credited interest depends on index performance, caps, participation rates, and spreads set by the carrier. In flat or negative market years, the 0% floor protects your principal, but you earn nothing. Over a full market cycle, most FIA owners see returns between CDs and direct equity exposure.Can I lose money in a fixed index annuity?
Your account value cannot decrease from index losses because of the 0% floor built into every FIA contract. However, there are two scenarios where your cash value could decline. First, income rider fees (typically 0.75% to 1.25% per year) are deducted from your accumulation value, which can reduce it over time if index credits do not exceed the fee. Second, if you withdraw funds during the surrender period, the carrier will apply a surrender charge that can reduce your payout below what you originally deposited.What are the disadvantages of fixed index annuities?
The main drawbacks are surrender charges that lock up your money for 7-10 years, caps and participation rates that limit your upside in strong markets, and complexity that makes comparing products difficult. Optional income rider fees (0.75-1.25% per year) also reduce your accumulation value over time. FIAs are best suited for money you will not need for at least 7 years.How are fixed index annuities taxed?
FIA gains grow tax-deferred. When you withdraw, the gain portion is taxed as ordinary income (not capital gains). For qualified FIAs (IRA/401k), the entire withdrawal is taxable. For non-qualified FIAs, only the gain above your cost basis is taxed. Withdrawals before age 59 1/2 may also incur a 10% IRS early withdrawal penalty.Who should not buy a fixed index annuity?
FIAs are not a good fit if you need full access to your money within 7 years, want unlimited market upside with no caps, are under 40 with decades until retirement, or cannot afford to have any portion of your savings in a surrender charge period. They are also unnecessary inside a Roth IRA if your primary goal is tax-free growth, since simpler investments achieve the same tax benefit without surrender restrictions.How do I choose between fixed index annuity companies?
Focus on five factors: financial strength (AM Best A- or higher), current crediting rates and renewal history, product features (free withdrawals, waivers, death benefit), income rider competitiveness (if you need guaranteed income), and the specific indexes available. Compare at least 3-4 carriers before purchasing. Request a personalized quote to see side-by-side comparisons for your specific situation.Sources: LIMRA U.S. Individual Annuity Sales Survey (2025 full-year data). NAIC annuity regulatory filings. AM Best, S&P Global, and Moody's financial strength ratings current as of Q1 2026. Company websites: Athene. Product details sourced from carrier rate sheets and product guides. See our FIA industry sales history for additional market data.
Related reading: What Is a Fixed Index Annuity? | FIA Crediting Methods Explained | How Income Riders Work | Current FIA Rates | Fixed Annuity Guide | Request a Free Quote
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