Annuity Types Explained
See how fixed, MYGA, FIA, variable, and SPIA annuities differ—then open the guide that matches your goal. Immediate vs deferred, tax deferral, FDIC. Links to deep dives on each type.
“Understanding these product types helps you match the right annuity to your income goals, time horizon, and risk tolerance.”
“Annuity” is an umbrella term. A fixed annuity and a variable annuity share a tax-deferred wrapper and little else—one locks a declared rate; the other puts principal in subaccounts that can drop with the market. Start with the category that matches your goal, then use the product cards and guides below for depth.
At a glance
- Fixed and MYGA: guaranteed crediting, principal protected from market loss, surrender schedules apply.
- Fixed indexed (FIA): index-linked credits with a floor (often 0%), upside limited by caps or participation rates.
- Variable: direct market exposure in subaccounts, no principal floor, highest typical fee load when riders are added.
- SPIA: lump sum in, income starts soon—longevity and investment risk shift to the carrier on lifetime options.
- Immediate vs deferred is a separate axis: income soon versus grow first, then take income or withdrawals later.
Use the sections below for a quick map, then open the guide for the line you care about. New to annuities altogether? Read what are annuities? first.
Product types
Fixed, indexed, MYGA, and SPIA contracts—each with different risk, growth, and income profiles.
Fixed annuity
Guaranteed interest rate for a set period. Principal is protected from market loss. Predictable growth.
Learn more →Fixed indexed annuity (FIA)
Returns tied to a market index with downside protection. Participation in gains, no direct market losses.
Learn more →MYGA
Multi-year guaranteed rate. Functions like a CD with tax deferral. Locked rate for 3–10 years.
Learn more →SPIA
Single premium immediate annuity. Convert a lump sum into guaranteed income that starts soon after issue.
Learn more →Guides
Fundamentals, taxation, payouts, and beneficiaries.
Fixed, indexed, and variable (how money is credited)
Carriers group deferred annuities by how the account earns: fixed rate, index-linked crediting, or variable subaccounts. Fixed contracts declare a rate; indexed contracts use caps, participation rates, or spreads; variable contracts use mutual fund–like subaccounts and are also subject to securities rules. Our product guides below focus on fixed, MYGA, and FIA for shoppers who want declared guarantees or index-linked growth with a floor; variable is summarized in the table and short section that follow so you know how it differs before you drill into a prospectus-level decision.
Immediate vs deferred
Immediate annuities start income within about a year of purchase (SPIA is the common form). Deferred annuities accumulate first—withdrawals, annuitization, or income riders come later. For accumulation and payout mechanics, see how annuities work.
Compare types
| Type | How value builds | Principal vs market | Typical next step |
|---|---|---|---|
| Fixed | Declared rate from the insurer | Protected from market loss | Fixed annuity |
| MYGA | Guaranteed rate for a set term | Protected from market loss | MYGA |
| FIA | Index-linked crediting, floor on losses | Not invested directly in stocks; upside capped | Fixed indexed annuity |
| Variable | Subaccounts track markets | Account value can fall; no floor | Review prospectus, fees, and riders with licensed help |
| SPIA | No accumulation—premium converts to income | Income guaranteed per contract terms; premium is not a liquid balance | SPIA |
Variable annuities (short version)
Variable annuities put your premium in subaccounts; when markets fall, account value can fall with them. Costs are usually higher than fixed or indexed chassis: mortality and expense, subaccount fees, and optional income riders often combine to roughly 1.5%–3.5% all-in when riders are stacked. They can fit long horizons and clients who want market exposure inside a tax-deferred insurance contract—after essential income is covered elsewhere. This page routes you to fixed, MYGA, FIA, and SPIA guides for guarantee-first shopping; variable work is illustration- and disclosure-heavy, so compare with a licensed professional.
When you are ready for numbers, use annuity rates and carrier comparisons.
Expert Tip: Pick the job before the product
Indexed growth does not fix a liquidity problem; a deferred chassis does not fix an income-this-year problem. Name the job (income timing, guarantee level, tolerance for caps and surrender years), then open the guide for that line.
—Brad Cummins
Category labels hide how carriers price your premium band, state, and surrender appetite differently once you leave glossary mode. After the map clicks, validate numbers on the same facts: explore annuity quotes from 30+ carriers for the use case you actually intend to fund.
FAQ
Compare Annuity Quotes
Get quotes from multiple carriers. Compare rates and product fit in minutes.
See your numbers