Your options, in context

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The largest payment or highest headline rate is only one part of the decision.

Annuity types at a glance
TypeHow it worksPotential purposeLook closely at
Fixed / MYGADeclared interest under contract termsPredictable accumulation over a stated periodEarly access restrictions; renewal-rate uncertainty
Fixed indexedA formula linked to a benchmarkIndex-linked interest with defined crediting limitsCaps, participation terms, charges and surrender rules
Income annuityPremium exchanged for a payment streamIncome for a chosen period or covered lifetimeLiquidity, inflation and beneficiary choices
Variable / RILAInvestment options or index-linked gains and lossesGrowth exposure with insurance featuresMarket losses, complexity, costs and term restrictions

General categories, not a product ranking. Guarantees depend on the issuing insurer. Source: SEC Investor.gov.

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A payout rate includes payments of capital and is not the same as an investment return.

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