Annuity types

Compare annuity families side by side.

No single annuity is "best." The right one depends on the job the money needs to do, how soon you need it, and how much liquidity you are willing to give up.

Feature	MYGA / Fixed	Fixed Indexed	Income Annuity	Variable / RILA
What it does	Fixed interest rate for a set term.	Interest linked to an index with a floor.	Premium exchanged for guaranteed payments.	Market-linked subaccounts or index exposure.
Growth	Declared rate; tax-deferred.	Capped or participation-limited index upside; no direct market loss.	Not a growth vehicle; payout depends on age, gender, and timing.	Full market upside potential, subject to fees and caps.
Protection	Original premium protected by insurer's claims-paying ability; no market decline risk.	Floor protects against index losses; subject to cap/par/spread terms.	Payments backed by the insurer's claims-paying ability.	Variable: investment risk. RILA: buffer/floor may limit losses but not eliminate them.
Income options	Typically deferred; annuitization or withdrawals may be available.	Income riders available for an additional charge or benefit base.	Life, period certain, joint life, cash refund, and other options.	Guaranteed benefit riders may be available for an extra charge.
Liquidity	Surrender charges during term; often 10% annual free withdrawal.	Surrender schedule; partial withdrawals usually allowed.	Generally low; premium is largely irrevocable.	Surrender charges; subaccount transfers may have limits.
Tax treatment	Tax-deferred until withdrawn.	Tax-deferred until withdrawn.	Partly taxable; non-qualified has exclusion ratio.	Tax-deferred until withdrawn.
Best for	CD-like safety with tax deferral.	Growth potential with a downside boundary.	Covering essential expenses you cannot outlive.	Investors comfortable with market risk.

MYGA / Fixed

What it does: Fixed interest rate for a set term.
Growth: Declared rate; tax-deferred.
Protection: Original premium protected by insurer's claims-paying ability; no market decline risk.
Income options: Typically deferred; annuitization or withdrawals may be available.
Liquidity: Surrender charges during term; often 10% annual free withdrawal.
Tax treatment: Tax-deferred until withdrawn.
Best for: CD-like safety with tax deferral.

Fixed Indexed

What it does: Interest linked to an index with a floor.
Growth: Capped or participation-limited index upside; no direct market loss.
Protection: Floor protects against index losses; subject to cap/par/spread terms.
Income options: Income riders available for an additional charge or benefit base.
Liquidity: Surrender schedule; partial withdrawals usually allowed.
Tax treatment: Tax-deferred until withdrawn.
Best for: Growth potential with a downside boundary.

Income Annuity

What it does: Premium exchanged for guaranteed payments.
Growth: Not a growth vehicle; payout depends on age, gender, and timing.
Protection: Payments backed by the insurer's claims-paying ability.
Income options: Life, period certain, joint life, cash refund, and other options.
Liquidity: Generally low; premium is largely irrevocable.
Tax treatment: Partly taxable; non-qualified has exclusion ratio.
Best for: Covering essential expenses you cannot outlive.

Variable / RILA

What it does: Market-linked subaccounts or index exposure.
Growth: Full market upside potential, subject to fees and caps.
Protection: Variable: investment risk. RILA: buffer/floor may limit losses but not eliminate them.
Income options: Guaranteed benefit riders may be available for an extra charge.
Liquidity: Surrender charges; subaccount transfers may have limits.
Tax treatment: Tax-deferred until withdrawn.
Best for: Investors comfortable with market risk.

This table summarizes typical contract structures. Specific products vary by state, insurer, and issue date. Always read the contract and the illustration before making a decision.

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Annuities are insurance products, not bank deposits. Guarantees are subject to the claims-paying ability of the issuing insurer. Withdrawals before age 59½ may be subject to a 10% federal tax penalty. Products, rates, and availability vary by state and change without notice. This page is educational, not a recommendation to buy, sell, or exchange any product.