Get Flexible Income Annuity Fund Switch Form - Scottish Friendly

A fixed indexed annuity is a tax-deferred, long-term savings option that provides principal protection in a down market and opportunity for growth. It gives you more growth potential than a fixed annuity along with less risk and less potential return than a variable annuity.

FIAs are popular because they offer guaranteed growth on your investment, and generally speaking, they have higher rates of return than CDs or savings accounts.

As part of a well-rounded retirement plan, annuities can provide some protection for you and your family. That could include a death benefit (provided you didn't start your income), a survivorship clause, or being able to pass the annuity on to heirs. This makes them more flexible than many retirement savings vehicles.

FIAs are insurance products that offer growth potential and guaranteed income for retirement. Funds in an FIA earn interest credits based in part on the upward movement, if any, of a reference stock market index, such as the S&P 500®.

Evaluating the Potential Drawbacks of Flexible Premium Annuities. Despite their numerous benefits, flexible premium annuities are not without potential drawbacks. They often come with specific fees and surrender charges, especially if you withdraw funds earlier than agreed.

FIAs work by crediting interest to the policy owner based on the terms outlined in their particular contract. Sometimes the credited interest amount is capped, but some FIAs are uncapped. Some policies have a floor or a minimum interest rate that gets credited to the policy regardless of how the market performs.

FLEXIBLE life ANNUITY The FLA is a purchased life annuity. During the lifetime of the annuity, the policyholder can elect to change the amount of the annuity payments (either increase or decrease). A wide range of assets is allowed in the FLA.

The two main options for annuity premiums are single, meaning you make a one-time lump-sum payment, or flexible, meaning you make several payments over time. So, a flexible premium deferred annuity is an annuity that you pay into incrementally over time and that you defer receiving payments from until a later date.

The Flexible Income Annuity is an investment-linked annuity. This means we invest your pension in the stock market and other financial investments. Your income level could be maintained or grow if the markets increase in line with the performance levels we set (we call this 'required fund performance').