What is one advantage of fixed indexed annuities?

One significant advantage of fixed indexed annuities is that they often provide a higher return than traditional fixed annuities. This is primarily due to their design, which links the return to a specific stock market index while still offering a level of protection against losses. Unlike traditional fixed annuities, which offer a guaranteed, but generally lower interest rate, fixed indexed annuities have the potential to capture some of the market's upside. This allows policyholders to benefit from market gains without directly participating in the stock market, thus offering a balance of growth potential and security.

The allure of these products lies in their ability to combine features of investment and insurance. While they are not risk-free and do come with associated fees, their structure allows for growth that may outpace the stable but lower returns of traditional fixed annuities. This makes them an attractive option for individuals seeking growth potential with a desire for some protection from market volatility.