Annuity Types
Compare fixed, indexed, MYGA, and SPIA annuities—how each works, who it fits, and tradeoffs before you quote carriers.
“Name the goal first. Growth is a fixed or indexed annuity. Income is immediate or deferred.”
Annuities come in two shapes, based on the goal. You are either growing the money, or you are buying income.
Accumulation. You want the account to grow before you spend it.
- Fixed. A fixed annuity credits a set interest rate. A MYGA is the version that locks that rate for the whole term.
- Indexed. An indexed annuity credits interest from a market index. You can get part of the gain. You do not lose principal if the index falls.
Income. You want a paycheck from the premium.
- Immediate. A SPIA starts income within about a year.
- Deferred. You pay now, and the paycheck starts on a date you choose later.
Name the goal first. Growth narrows you to fixed or indexed. Income narrows you to immediate or deferred. After that, we compare carriers inside the type that matches the goal.
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.
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.
How do annuities work?
Accumulation, annuitization, withdrawals, and key mechanics.
Learn more →Annuity taxation
Tax-deferred growth, qualified vs. non-qualified, and withdrawals.
Learn more →Annuity payout options
Life-only, joint and survivor, period certain, and lump-sum tradeoffs.
Learn more →Annuity beneficiary rules
Spousal continuation, inherited contracts, and payout elections.
Learn more →Comparisons
How annuities stack up against CDs, 401(k)s, and life insurance.
Annuities vs. CDs
Rate, tax deferral, FDIC insurance, and liquidity on MYGAs vs bank CDs.
Learn more →Annuities vs. 401(k)
Employer match, contribution limits, and guaranteed income vs workplace plans.
Learn more →Annuities vs. life insurance
Longevity income vs death benefit protection — and when each fits.
Learn more →How the types compare
Once the goal is accumulation or income, these are the contracts on this hub:
- Fixed annuities credit a declared rate for a set period with principal protected from market loss inside the contract.
- MYGAs lock one guaranteed rate for the full guarantee period—often the cleanest CD comparison.
- Fixed indexed annuities (FIAs) credit interest from index movement with caps or participation limits and a contractual floor on the indexed strategy.
- SPIAs convert a lump sum into income that typically begins within 12 months—no accumulation phase.
If you need income within a year, start with the SPIA guide. If you are parking rollover dollars for three to seven years, compare MYGA and fixed contracts first.
Related annuity guides
After you pick a product type, compare annuity rates and annuity companies on identical assumptions. Deeper guides cover how annuities work, taxation, payout options, and comparisons such as annuities vs CDs and annuities vs 401(k).
When to quote carriers
Product type narrows the field; illustrations settle the decision. Surrender schedules, free withdrawal amounts, renewal behavior on declared rates, and SPIA payout forms change the outcome as much as the headline rate or cap.
We prepare side-by-side carrier comparisons on identical premium, state, and payout assumptions before you sign. That is especially important on FIAs, where benefit base riders are easy to misread as cash value. Return to the annuities hub for who should and should not buy.
Before you commit
The annuity type is the decision. A MYGA locks a rate. A fixed contract can reset. An indexed annuity trades a cap for a floor. A SPIA turns the premium into a paycheck you generally cannot undo. Shopping carriers before you name the type compares contracts that do not do the same job.
Before we illustrate, we lock three things:
- The job. Locked growth, index-linked growth, or income that starts now.
- When you need the principal. Inside the surrender years means this is the wrong type, or a smaller premium.
- The same case after the type is set. Same premium and state, inside one product. A MYGA rate is not an FIA cap and not a SPIA check.
Tell us the job and when you need the money. We illustrate that type, then the carriers inside it.
Conclusion
Choosing the wrong annuity type is expensive to undo once surrender charges apply. Match growth mechanics, income timing, and liquidity needs first — then shop carriers on the same product category. Local Life Agents compares illustrations on your premium and state before you fund a contract.
FAQ
Annuities
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