Fixed Index Annuities We Like and Why We Like Them
There is no single fixed index annuity that is the right choice for every retirement plan. Some contracts are designed primarily for protected accumulation, while others emphasize predictable lifetime income, a stronger legacy, or additional income during a qualifying health event.
The fixed index annuities below are products we like for specific reasons. They are not ranked from first to last, and the most appropriate option depends on your age, state, deposit, income timeline, liquidity needs, and beneficiaries.
A fixed index annuity is a long-term insurance contract. It can protect your principal from direct market losses while crediting interest partly according to the performance of one or more indexes. You are not investing directly in an index, and your credited interest will not equal the index’s total return.
Fixed Index Annuities We Like At A Glance
| Retirement Goal | Fixed Index Annuity | Why We Like It |
|---|---|---|
| Protected accumulation with a locked S&P 500 cap | Sagicor Sage Accumulator | The 5- and 7-year versions offer a 10% annual point-to-point cap on the true S&P 500 that is locked for the full contract term. |
| Protected accumulation with multiple locked index caps | Oceanview CapLock | Cap rates can be locked for the applicable guarantee period while providing access to recognizable indexes such as the S&P 500, Nasdaq-100, and Russell 2000. |
| Protected accumulation with a locked trigger rate | The Standard Enhanced Choice Index Plus 7 | Its locked trigger strategy provides a predetermined interest credit when the applicable index finishes flat or positive. |
| Lifetime income with an enhanced death benefit | Athene Agility | A built-in rider uses a Benefit Base to calculate both lifetime income and a death benefit. |
| Lifetime income while protecting an original legacy | Lincoln OptiBlend Income | The optional Estate Lock Death Benefit can preserve the original investment for beneficiaries while the account value remains above zero. |
| Lifetime income that will begin later | Nationwide Peak 10 | Its income choices are designed to reward a planned deferral period before lifetime withdrawals begin. |
| Lifetime income that will begin sooner | North American Income Pay Pro | It offers level or increasing lifetime payment options and useful flexibility for managing retirement income. |
| Lifetime income with an extended care multiplier | Ceres Life Graybar IncomePlus | A qualifying covered person can receive double the guaranteed income for as many as five nonconsecutive years, even if the account value is no longer positive. |
This table summarizes the feature that puts each contract on our comparison list. It does not show every contract provision, rider charge, surrender schedule, state variation, or eligibility requirement.
Sagicor Sage Accumulator For A Locked S&P 500 Cap
We like the Sagicor Sage Accumulator for people whose primary goal is protected accumulation and who want a straightforward strategy tied to the true S&P 500. Sagicor is an A-rated insurance company, and the Sage Accumulator is available in 5-, 7-, and 10-year versions.
The feature that puts it on our list is its 10% annual point-to-point S&P 500 cap. On the 5-year and 7-year products, that 10% cap rate is locked for the entire term of the contract.
That matters because many fixed index annuities allow the insurance company to declare a new cap at each contract anniversary. An attractive first-year cap therefore does not necessarily tell you how much upside potential the contract will provide several years later. With the 5- and 7-year Sage Accumulator, the S&P 500 cap is established upfront and cannot be reduced during the contract term.
The 10-year version also begins with a 10% S&P 500 cap, but that cap is locked for the first five years rather than all ten years. A new guaranteed cap is established for years six through ten.
Pros
- The 5-year product currently offers a 10% S&P 500 cap locked for the entire 5-year term.
- The 7-year product currently offers a 10% S&P 500 cap locked for the entire 7-year term.
- The strategy uses the traditional S&P 500 rather than requiring an engineered index to pursue competitive upside.
- Negative S&P 500 performance does not directly reduce the contract value.
- Five-, seven-, and ten-year contract options allow the surrender period to be matched more closely to the investor’s time horizon.
Cons
- The cap still limits how much S&P 500 growth can be credited during a measurement period.
- The initial 10% cap on the 10-year product is locked for only the first five years, not the entire 10-year term.
- A locked cap will not increase during the lock period if market conditions later support higher cap rates.
- Withdrawals above the contract’s free-withdrawal amount can be subject to surrender charges.
Who could benefit: Someone who wants principal protection, prefers the true S&P 500, can leave the money in the contract for the selected term, and values knowing the cap cannot be reduced every year.
Who might not benefit: Someone who needs unrestricted access to the entire deposit, wants unlimited stock-market participation, or wants a 10-year product with the initial cap guaranteed for all ten years.
Oceanview CapLock For Multiple Locked Index Caps
We like Oceanview CapLock for people who want protected accumulation but prefer multiple recognizable index choices rather than focusing primarily on the S&P 500.
The product offers strategies tied to traditional indexes such as the S&P 500, Nasdaq-100, and Russell 2000. Its defining feature is the ability to select a guaranteed cap-rate strategy that locks the applicable cap for the selected guarantee period.
In many FIAs, the insurer can declare a new cap at each contract anniversary. Oceanview’s CapLock structure addresses that uncertainty by establishing the applicable cap at issue and keeping it unchanged for the selected guarantee period.
This does not guarantee that an index will rise or that the annuity will earn interest every year. The advantage is knowing the maximum amount of index-linked interest that can be credited when the applicable index performs positively.
Pros
- The applicable cap is protected from annual re-declaration during the selected guarantee period.
- Traditional index choices include the S&P 500, Nasdaq-100, and Russell 2000.
- Multiple recognizable indexes provide more allocation choices than a product focused primarily on one index.
- Negative index performance does not directly reduce the contract value.
- It is designed around accumulation rather than requiring an income-rider fee.
Cons
- The cap still limits the amount of index-linked interest that can be credited.
- A flat or negative index period may result in no indexed interest.
- The product does not include the type of guaranteed lifetime withdrawal benefit we would normally use to build flexible lifetime income.
- Withdrawals above the contract’s free amount can trigger surrender charges and a market value adjustment.
Who could benefit: Someone who wants principal protection, is comfortable leaving the money in the contract for the selected term, and wants locked crediting terms with several traditional index choices.
Who might not benefit: Someone who needs flexible access to the entire deposit, wants unlimited stock-market participation, or needs contractually guaranteed lifetime withdrawals.
The Standard Enhanced Choice Index Plus 7 For A Locked Trigger Rate
We like The Standard Enhanced Choice Index Plus 7 because it offers a different form of crediting certainty: a locked trigger-rate strategy.
With a standard trigger-rate strategy, the annuity credits a predetermined rate when the applicable index finishes the measurement period at zero or above. The amount of the index gain does not change the interest credit. A small positive result and a much larger positive result receive the same trigger-rate credit.
The locked version establishes the trigger rate at the beginning of the contract and prevents it from being reduced during the applicable guarantee period. We like this structure for someone who values predictability and does not want the trigger rate re-declared every year.
Pros
- The trigger rate remains known during the applicable guarantee period.
- The index only needs to finish flat or positive to earn the predetermined trigger credit.
- The crediting result is easier to follow than many multi-asset or formula-driven strategies.
- Principal is protected from direct losses caused by negative index performance.
Cons
- A very strong index year does not produce more than the predetermined trigger credit.
- A negative result under the standard locked trigger strategy may produce no indexed interest for that period.
- Money allocated to a locked strategy generally cannot be reallocated until its guarantee period ends.
- Availability can vary by state and distributor.
Who could benefit: Someone seeking protected accumulation who prefers a clear pass-or-fail crediting method and wants the trigger rate locked instead of re-declared annually.
Who might not benefit: Someone who wants unlimited participation in a strong market, expects to move frequently between strategies, or may need to surrender the contract early.
Athene Agility For Lifetime Income And An Enhanced Death Benefit
We like Athene Agility for someone who wants lifetime income but also cares about leaving money to beneficiaries. The contract automatically includes an Income and Death Benefit Rider. Both benefits are calculated using a Benefit Base rather than relying only on the remaining account value.
The Benefit Base is an accounting value used to calculate eligible lifetime withdrawals and the rider’s death benefit. It is not the same as the contract’s cash value, and it cannot be withdrawn as a lump sum. That distinction is important because a large Benefit Base does not mean the owner has an equally large amount available for surrender.
Athene Agility also includes an enhanced income feature for a qualifying care-facility event. That feature may double the maximum lifetime income withdrawal until the accumulated value reaches zero. It is not long-term care insurance and should not be presented as a substitute for a standalone or asset-based long-term care insurance policy.
Pros
- The Income and Death Benefit Rider is built into the contract.
- The same Benefit Base supports both lifetime income and a beneficiary benefit.
- The benefit base can be taken as a death benefit by your beneficiaries paid out over 5-10 years.
- A qualifying care-facility event may temporarily increase lifetime withdrawals.
Cons
- The Benefit Base is not cash value and cannot be taken as a lump sum.
- Excess withdrawals can reduce future income and death benefits.
- The enhanced income feature has eligibility requirements and ends when the accumulated value reaches zero.
- The contract’s accumulation potential may be less important than its income and legacy guarantees.
Who could benefit: Someone who wants lifetime income, would like an enhanced death benefit for beneficiaries, and understands the difference between the Benefit Base and cash value.
Who might not benefit: Someone focused only on maximum accumulation, someone who may need large unscheduled withdrawals, or someone who needs comprehensive long-term care coverage.
Lincoln OptiBlend Income For Lifetime Income And Estate Lock
We like Lincoln OptiBlend Income with the optional Estate Lock Death Benefit for people who want lifetime income but do not want to assume that taking income will automatically eliminate their original legacy.
If at least $1 remains in the account when the owner dies, Estate Lock can generally pay beneficiaries the original investment or the account value, whichever is higher, subject to the contract and state-specific limitations. This can allow the owner to receive substantial lifetime withdrawals and still preserve a meaningful beneficiary benefit.
The limitation is just as important as the benefit: if the account value reaches zero, lifetime income can continue, but Estate Lock terminates. The rider therefore protects the legacy only while a positive account value remains. Estate Lock is optional, carries an additional charge, and may be subject to a benefit cap in certain states.
Pros
- It combines guaranteed lifetime income with a defined legacy objective.
- The beneficiary may receive the original investment even after the owner has taken lifetime withdrawals.
- If the account value is higher than the protected original investment, the higher account value may be payable.
- Lifetime income can continue even if the account value is exhausted.
Cons
- Estate Lock terminates if the account value reaches zero.
- The optional death benefit adds a separate rider charge.
- State-specific caps and contract provisions may limit the death benefit.
- Excess withdrawals can weaken both the income strategy and the intended legacy.
Who could benefit: Someone who wants to draw lifetime retirement income while preserving the original deposit as a potential inheritance.
Who might not benefit: Someone who does not need a death benefit, is unwilling to pay for the optional protection, or expects withdrawals that could quickly reduce the account value to zero.
Nationwide Peak 10 For Lifetime Income Later
We like Nationwide Peak 10 when the primary goal is lifetime income, but the owner plans to wait before turning that income on.
Peak 10 offers a built-in income solution and an optional enhanced income rider. Both use an Income Benefit Base to determine future lifetime withdrawals. The optional rider begins with an income-base enhancement and then increases that base during the eligible deferral period. These values are designed to calculate future income; they are not cash values available for surrender.
The product’s main advantage is that delaying lifetime withdrawals can improve the future income calculation. Starting income early, taking an unplanned withdrawal, or choosing a different deferral period can materially change the result. A personalized illustration should therefore use the age and year when the buyer realistically expects to begin income.
Pros
- The design rewards someone who has time to defer lifetime withdrawals.
- Lifetime income can continue even if the contract value later reaches zero.
- Both built-in and optional income approaches are available.
- The contract retains index-linked growth potential while preparing for future income.
Cons
- The enhanced income rider carries an additional charge.
- Income-based increases generally stop when lifetime withdrawals begin.
- The Income Benefit Base is not an amount that can be surrendered for cash.
- A long surrender period makes the product inappropriate for short-term money.
Who could benefit: Someone approaching retirement who wants to establish a future lifetime-income floor but does not need to begin withdrawals immediately.
Who might not benefit: Someone who needs income right away, needs short-term liquidity, or is primarily seeking unrestricted account-value growth.
North American Income Pay Pro For Lifetime Income Sooner
We like North American Income Pay Pro when lifetime income needs to begin sooner rather than after a long deferral. It is a deferred fixed index annuity with an embedded GLWB, not a single premium immediate annuity. The distinction matters because the contract retains an account value and uses withdrawal benefits instead of requiring immediate, irreversible annuitization.
Income Pay Pro offers level and increasing lifetime payment options. Level income begins higher and is designed to remain consistent, while increasing income generally begins lower but can rise according to the rider’s terms. It also includes an income reserve feature that can allow part or all of an eligible lifetime payment to be deferred for a later need.
The product also offers a nursing-home multiplier that may temporarily increase eligible lifetime payments. Qualification rules apply, and the feature is not a substitute for long-term care insurance.
Pros
- It is designed to provide guaranteed lifetime income without annuitizing the contract.
- Level and increasing payment choices address different retirement-income concerns.
- The income reserve can provide flexibility when a scheduled payment is not immediately needed.
- A qualifying nursing-home event may increase eligible lifetime payments.
Cons
- The embedded GLWB includes a rider charge deducted from the accumulation value.
- An increasing-income option normally begins with less income than a comparable level option.
- Excess withdrawals can reduce or jeopardize future guaranteed payments.
- The nursing-home multiplier has eligibility requirements and is not comprehensive care coverage.
Who could benefit: Someone who needs lifetime income relatively soon and wants to choose between a larger level payment and a lower starting payment with increasing potential.
Who might not benefit: Someone whose income will not begin for many years, someone who does not want an income-rider charge, or someone who requires unrestricted access to the deposit.
Ceres Life Graybar IncomePlus For An Extended Care Multiplier
We like Ceres Life Graybar IncomePlus because its enhanced withdrawal feature solves a problem that many income riders do not address well: a qualifying care need that lasts longer than one continuous period or occurs after the contract value has been depleted.
After the contract’s waiting period, a covered person who is unable to perform at least two of the six Activities of Daily Living may qualify to receive twice the normal Guaranteed Income Amount while the impairment continues. The enhancement is available for as many as five years, and those years do not have to be consecutive.
The enhanced income is not conditioned on the accumulation value remaining positive. That means an eligible covered person may continue receiving the enhanced amount even after the account value reaches zero. For joint lifetime payments, the available enhanced years may be used alternately between spouses, subject to the rider’s terms.
This feature is an enhancement to an annuity income rider. It is not long-term care insurance, does not reimburse the full cost of care, and does not replace the broader benefits that may be available through a dedicated long-term care policy.
Pros
- The guaranteed income can double during a qualifying impairment.
- The five enhanced-benefit years do not have to be consecutive.
- The enhanced benefit is not conditioned on a positive accumulation value.
- Joint coverage can allow spouses to use the available enhanced years at different times.
Cons
- A waiting period applies before the enhanced benefit can be used.
- The covered person must satisfy the rider’s Activities of Daily Living requirements.
- The GLWB carries an annual rider fee based on the Benefit Base.
- The five-year enhanced-benefit limit may not cover a prolonged care need.
- The product is a long-term contract with surrender charges and a bonus-recapture schedule.
Who could benefit: Someone who wants lifetime income and values a longer, more flexible care-related multiplier that can survive the depletion of the account value.
Who might not benefit: Someone who needs immediate care benefits, wants comprehensive long-term care insurance, or may need to surrender the annuity during its early years.
What These Fixed Index Annuities Have In Common
Although we like these contracts for different reasons, they share the basic protections and limitations associated with fixed index annuities.
- Protection from direct market losses: A negative index return does not directly reduce the contract value, although rider charges and excess withdrawals can reduce it.
- Limited market-linked interest: Caps, participation rates, trigger rates, spreads, and other contract terms limit or determine the interest credited.
- Tax deferral: Interest generally grows tax-deferred until withdrawn. An IRA already receives tax deferral, so placing IRA money in an annuity does not create an additional tax-deferral benefit.
- Long-term commitment: Withdrawals exceeding the contract’s free amount can trigger surrender charges, market value adjustments, bonus recapture, or reductions to guaranteed benefits.
- Insurance-company guarantees: Guarantees depend on the claims-paying ability of the issuing insurer. Annuities are not bank deposits and are not FDIC insured.
Before purchasing, review the carrier’s financial strength and your state’s annuity guaranty association coverage. State guaranty associations are a backstop subject to eligibility rules and coverage limits, not a reason to ignore carrier quality.
Who Could Benefit From One Of These FIAs?
- Retirement savers who want to avoid direct losses from a stock-market decline.
- People who can leave the deposit in a long-term insurance contract.
- Investors who want a known cap or trigger rate instead of allowing the insurance company to re-declare the crediting rate annually.
- Retirees who want guaranteed lifetime withdrawals without automatically annuitizing the account.
- People who want to coordinate retirement income with a legacy for beneficiaries.
- Couples concerned about how a qualifying care event could increase their income needs.
Who Might Not Benefit From These FIAs?
- People who need unrestricted access to all of their money.
- Investors who want dividends and unlimited participation in stock-market gains.
- People who may need to withdraw the money before age 59½ and could face an additional federal tax penalty.
- Someone seeking short-term savings rather than a long-term retirement contract.
- Someone who needs comprehensive long-term care insurance rather than a limited annuity income enhancement.
How To Choose The Right FIA For Your Goal
Start with the job the money must perform. If the goal is accumulation, decide what type of crediting certainty matters most. The Sagicor Sage Accumulator provides a locked S&P 500 cap on its 5- and 7-year products. Oceanview CapLock provides locked caps with several traditional index choices. The Standard Enhanced Choice Index Plus provides a locked trigger-rate strategy. These approaches solve similar problems in different ways.
If the goal is income, determine the year payments should begin, whether the income should remain level or increase, and whether the plan also needs a protected legacy or an enhanced benefit during a qualifying care event.
Do not select an annuity because one advertised number looks attractive. Compare whether the rate is guaranteed and for how long, the index being used, the surrender period, free-withdrawal rules, rider charges, income start date, single versus joint income, death benefit, care qualifications, carrier financial strength, and state-specific provisions.
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Frequently Asked Questions
Are these the best fixed index annuities?
They are several FIAs we like for particular retirement objectives, but no contract is best for every person. Product availability and suitability depend on the buyer’s age, state, financial position, income needs, and intended use of the money.
Can fixed index annuity cap and trigger rates change?
Yes. Rates available on new contracts can change. Some products also allow rates to be re-declared after issue, while others contractually lock a cap or trigger rate for a specified period. Always confirm the current rate, how long it is guaranteed, and what can change after the contract is issued.
Why does a locked cap matter?
A locked cap prevents the insurance company from reducing that cap during the guaranteed period. This provides more certainty than a contract that can re-declare its cap annually, although the locked cap still limits the amount of index-linked interest that can be credited.
Can a fixed index annuity lose money?
A negative index result does not directly reduce the contract value. However, surrender charges, market value adjustments, rider fees, strategy charges, bonus recapture, and excess withdrawals can reduce the amount available.
Is an income benefit base the same as account value?
No. An income or death-benefit base is generally an accounting value used to calculate a contractual benefit. It is not normally available as a lump-sum withdrawal or surrender value.
Do the care multipliers provide long-term care insurance?
No. They can increase eligible annuity withdrawals after a qualifying event, but they do not provide the same coverage structure as long-term care insurance. Qualification periods, Activities of Daily Living requirements, benefit limits, and other contract conditions apply.
Can The Annuity Expert compare these products for me?
Yes. We can compare available contracts and carrier-approved illustrations based on your personal retirement objective. Our comparison service is free, and there is no obligation to purchase an annuity.
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