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If you are comparing types of annuities, start with how money grows and when income begins. Contracts range from fixed and MYGA products with guaranteed rates to indexed and immediate income designs. Most contracts have an accumulation phase, when money is funded and grows, and a distribution phase, when you take withdrawals or turn value into scheduled income.
Choosing the right type depends on whether you need principal protection, growth with a floor, or guaranteed lifetime income.
Use the guides below to compare fixed, indexed, MYGA, and SPIA contracts, plus tax, payout, and beneficiary rules.
Types of annuities: fixed, indexed, and variable
Industry and regulator materials often describe annuity types by how your money is credited: fixed, variable, or indexed. Fixed contracts guarantee a rate declared by the insurer. Indexed contracts tie growth to an external index with floors and caps or participation limits. Variable contracts invest in subaccounts; account value can go down with the market, and they are regulated like securities in addition to state insurance rules.
Our guides emphasize fixed, multi-year guaranteed, and fixed indexed products for clients who want declared guarantees or index-linked crediting with downside protection. For a side-by-side look that also covers variable annuities, fees, and riders, read our types of annuities overview.
Immediate vs deferred annuities
Timing is a separate decision from fixed versus indexed. Immediate annuities typically take a lump sum and start income within a year—common for paycheck replacement in retirement. Deferred annuities fund first and pay later, so growth can compound on a tax-deferred basis until you withdraw, annuitize, or turn on income. A single premium immediate annuity (SPIA) is the usual immediate structure; most deferred contracts are built to accumulate before income starts. For phase-by-phase mechanics, see how annuities work.
Compare annuity types at a glance
| Type | Primary use | Income timing | Principal protection | Liquidity note |
|---|---|---|---|---|
| Fixed | Declared rate accumulation | Usually deferred | Yes, per contract | Surrender schedule applies |
| MYGA | Locked rate for a set term | Deferred | Yes, per contract | Surrender schedule applies |
| FIA | Index-linked growth with a floor | Usually deferred | Typically protected from direct market loss | Caps and surrender periods |
| SPIA | Lifetime or period-certain income | Within about a year of purchase | Payout-focused, not a growth vehicle | Irrevocable after purchase |
Variable annuities are not shown in this grid; they are compared alongside these categories in the overview linked in the section above.
Who should compare which annuity types first
Match the product to the problem. If you need income to start soon and can commit a lump sum, start with immediate income designs and quote a SPIA. If you are years from retirement and want tax-deferred accumulation with a declared or indexed crediting approach, fixed, MYGA, or FIA comparisons usually come first. If you want full market exposure inside the annuity chassis and accept account volatility, variable products belong in the conversation—often with help reviewing the prospectus and fees.
This approach is a poor fit if you need unrestricted liquidity in the next few years, cannot accept surrender periods, or are uncomfortable translating caps, participation rates, and rider costs into a real decision. In those cases, other savings or income tools may be simpler.
When you are ready for numbers, explore current rates and top carriers.
Expert Tip: The mistake behind “best annuity type”
Most disappointment comes from buying the right category for the wrong job—indexed growth when you needed liquidity, or a deferred chassis when you needed income within months. Narrow the job first (income now versus grow later versus market-linked upside with a floor), then compare carriers. If variable subaccounts are on the table, read the fee stack and surrender schedule before the illustration looks exciting.
—Brad Cummins
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About Brad Cummins
Brad Cummins is the founder of Insurance Geek and primary author of its educational content. Licensed since 2004, he brings over 21 years of experience structuring life insurance and IUL strategies for clients nationwide.
Fact checked by Ryan Wood
Ryan Wood is a licensed insurance professional and contributing advisor at Insurance Geek, serving as a fact checker and technical reviewer for life insurance and annuity content. First licensed in 2013, he brings more than 12 years of experience and holds licenses in over 40 U.S. states.
