---
title: "What Is FIA (Fixed Indexed Annuity)? Definition | Epic Life Glossary"
description: "A fixed indexed annuity (FIA) is an annuity that credits interest based in part on the performance of a market index, with a minimum guarantee. The..."
url: https://epicline.preview.multisites.ai/glossary/fixed-indexed-annuity
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
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---

Annuity terms

# Fixed Indexed Annuity (FIA)

A fixed indexed annuity (FIA) is an annuity that credits interest based in part on the performance of a market index, with a minimum guarantee. The owner does not invest directly in the index.

## Why it matters

Interest in an FIA is calculated using a formula with caps, participation rates, or spreads, so gains are limited. In return, the contract usually protects principal from market losses, subject to the insurer's ability to pay. FIAs often have long surrender periods and charges for early withdrawals. Dividends are not included in index returns. The SEC and NAIC both advise buyers to understand the crediting method. Terms vary by carrier and by state.

Source: [investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/indexed-annuity)

[Read next, for familiesFixed vs fixed index annuity: how do they work and who do they fit?](https://epicline.preview.multisites.ai/guides/fixed-vs-fixed-index-annuity)

## Where we use this term

-   [Annuities explained: fixed, fixed-index, MYGA, income riders and surrender charges](https://epicline.preview.multisites.ai/annuities)

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