Annuities · Comparison
Fixed Annuity vs Indexed Annuity
Fixed annuities (MYGAs) offer a guaranteed interest rate for a set period. Indexed annuities (FIAs) offer market-linked growth with a 0% floor — you participate in market gains up to a cap, but can't lose principal in a down market.
Fixed Annuity vs Indexed Annuity — Key Differences
| Feature | Fixed Annuity | Indexed Annuity |
|---|---|---|
Fixed annuity: guaranteed rate (5.00–6.25% from A-rated carriers in 2026), certainty | ||
Indexed annuity: market-linked with 0% floor, potential for higher returns (up to 10.50% cap in 2026) | ||
Fixed annuity: simpler, more predictable, shorter surrender periods | ||
Indexed annuity: more complex, longer surrender periods, higher potential returns | ||
Neither is a direct stock market investment — you don't own shares | ||
| Fixed annuity is better for people who want certainty | Fixed annuity is better for people who want certainty | indexed for those who want growth potential with downside protection |
The Patriot Plans Verdict
Fixed annuities are right for people who want certainty and simplicity. Indexed annuities are right for people who want the potential for higher returns without the risk of losing principal.
Still Not Sure Which Is Right for You?
Patriot Plans is 100% independent. We compare both options from vetted carriers and recommend the one that's right for your specific situation — no sales pressure, no commissions driving our advice.