A fixed index annuity, or FIA, is an annuity whose interest is tied to a market index like the S&P 500, but with a floor that protects your principal from index losses. You share in some of the index's gains, up to a limit, and skip the down years.
In plain terms: An annuity that follows a market index for the good years and sits out the bad ones, with a cap on how much you earn.
An FIA is like a thermostat with a floor set at zero. When the index climbs, your credited interest rises with it, but only up to a ceiling. When the index falls, the floor kicks in and your credited interest for that period is zero, not negative. As of July 30, 2026, Fidelity & Guaranty Life's FG AccumulatorPlus 10 uses an S&P 500 annual point-to-point method with a 20.00% cap, and Ibexis FIA Plus 10 shows a 20.25% cap. Those numbers change and vary by state. The limits (cap, participation rate, or spread) are how the insurer pays for that downside protection.
An FIA can offer more growth potential than a plain fixed annuity without putting your principal at market risk. The catch is that caps and other limits mean you will not capture the index's full gain in a strong year.
Want a person to walk through this with you?
Find my advisorBring your goal, your questions, or an illustration someone handed you. A Certified Annuity Advisor compares real products for your situation and explains plainly what does and doesn't fit, so you leave with clarity instead of a pitch.
Call answered by a licensed advisor, with a follow-up in under 60 seconds during business hours.
