What is a Fixed Indexed Annuity?
A Fixed Indexed Annuity (FIA) is a financial product that blends growth potential with principal protection, making it an attractive option for certain individuals saving for retirement. With its unique features, FIAs offer a way to achieve steady, tax-deferred growth while safeguarding your principal from market downturns. Here’s a closer look at what a FIA is and how it works.

How a Fixed Indexed Annuity Works
FIA is a contract between you and an insurance company. Here’s how it functions:
- Initial Premium: You make an initial payment, often called your initial principal, which becomes the basis of your annuity.
- Growth Linked to an Index: The annuity’s interest earnings are tied to the performance of a market index, such as the S&P 500, without directly investing in the market.
- Guaranteed Protection: Even if the index performs poorly, your initial principal is protected, and you won’t lose any of your initial investment.
- Tax Treatment: Your earnings grow tax-deferred, based on the current tax code, until you withdraw them, allowing your savings to compound more efficiently. Withdrawals are generally taxed at ordinary income rates.
Key Features of an FIA
- Index Options:
- FIAs offer a variety of indices to choose from, such as the S&P 500, Nasdaq 100, or Russell 2000.
- Some FIAs also provide blended or custom indices for additional diversification.
- Crediting Strategies:
- Point-to-Point: Measures index performance over a specific period, such as one or two years.
- Participation Rate: A percentage of the index’s growth is credited to your account.
- Cap Rate: Limits the maximum interest you can earn.
- Spread: A fee deducted from the index’s performance before interest is credited.
- Principal Protection:
- Your initial investment is protected from market losses, regardless of how the index performs.
- Guaranteed Lifetime Income (Optional):
- Many FIAs offer riders that convert your savings into a guaranteed income stream for life.
Benefits of a Fixed Indexed Annuity
- Growth Potential with Safety:
- Earn interest based on market performance without the risk of losing your initial principal.
- Tax-Deferred Growth:
- Earnings compound without immediate tax implications, accelerating your savings.
- Customizable Options:
- Choose from various indices and crediting strategies to align with your financial goals.
- Income for Life:
- Optional riders provide guaranteed lifetime income, ensuring a steady income stream in retirement.
Is a FIA Right for You?
A Fixed Indexed Annuity is ideal for individuals who:
• Want to protect their savings while participating in potential market growth.
• Are looking for tax-advantaged ways to save for retirement.
• Seek a balance between risk and reward in their financial plan.
• Desire guaranteed income options in retirement.
Discover the Oceanview Difference
• Financial Strength You Can Trust: Rated “A” (Excellent) by A.M. Best, showcasing our solid financial foundation, providing you with confidence regarding Oceanview’s commitment to meeting obligations.
• Simple, Transparent Retirement Solutions: Straightforward annuity products designed to help you meet your retirement objectives.
• Competitive Rates and Flexibility: Benefit from competitive rates and a variety of durations and crediting strategies.
• Client-Centric Approach: Features such as free withdrawals, nursing home and terminal illness waivers, and full liquidity for beneficiaries upon the annuitant’s death demonstrate our commitment to your financial security and peace of mind.
Disclaimers
Annuities issued by Oceanview Life and Annuity Company, 1819 Wazee Street, 2nd Floor, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.
HARBOURVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.
Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals. Please review the contract for full details.
A.M. Best Rating as of December 11, 2024, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.
This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such.
Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.
The IRS may impose a penalty for withdrawals prior to age 59 ½.
Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.
While care was taken in preparing this information and it is considered reliable, contract, application, illustration, and product disclosure language should be relied upon when contrary. The Company reserves the right to correct any typographical errors that may exist.
Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated. Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.