As of February 15, fixed index annuities (FIA) have been on the market for 20 years, according to a press release from the Index Annuity Leadership Council (IALC).
The release notes, “Fixed indexed annuities offer the opportunity for growth through a steady, guaranteed lifetime income stream, all while protecting the principal from the uncertainty of market volatility. Indexed annuities offer a guaranteed rate of return, along with the potential for additional interest credited based on an external index. Once interest is credited, it will compound annually and can never be lost.”
The product has proven popular with buyers over the years. A LIMRA February 23, 2015 press release reported that “Indexed annuity sales reached $48.2 billion in 2014 – $9.0 billion higher than prior year – a 23 percent increase from 2013.