The main purpose of a Fixed Indexed Annuity (FIA) is protection of principle from loss. The FIA protects your principle while crediting interest to your account. You don�t own the risk the insurance company owns the risk. The return is generally linked to an index like the S&P 500. The real advantage is that it gives you the investor the option of in between the low interest rates of the bank and the high risk of the market.
