One can have fixed income if anyone likes to have. There is an insurance that is providing such facility. It is fixed index annuity. It is an insurance product that allows your savings to grow in a tax-deferred manner. There are different types of annuity that are available in the market. But this one is the best. The main difference between Fixed Index Annuity from other types of annuities is that the growth of your savings is linked to a stock market index. In this your downside is limited. There are two types of annuities. The first one is the accumulation phase and second one is the withdrawal phase. The first one that is accumulation phase provides you put money into an annuity and it grows in a tax-deferred way. You can choose to take money out during the withdrawal phase. The special thing about fixed index annuities is the way they allow your savings to grow with a stock market index during the accumulation phase and this makes it similar to a fixed-income instrument that protects your principal. The interest return is linked to a stock market index.

During the annuity accumulation phase the index annuity is linked to a stock market index. The fixed index annuities are limited in such a way that you are guaranteed not to lose your original principal. It is a kind of trade that provides returns that are guaranteed. The insurance company places limitations on the growth. You can receive from the linked stock market indexes. It has been observed that in many cases annuity’s growth is subject to participation rates, caps, and spreads. The changes in the stock market index impact the growth in your savings. It is the insurance companies that place these limitations on your stock market index. In such cases, that upside can be complex and may cause you to have unrealistic expectations of the returns.

There are numerous of crediting features that allows working in the best form. One of the features is the Caps. In this you have the limit how much of the stock market index return you will receive over a specified crediting period. If you purchase a fixed index annuity that  credits you each year with the return of the S&P 500 Index for the prior year up to a cap of 5%. For example if 10,000 rupees into the annuity on Jan. first 2018, and by Jan. 1, 2019, the S&P 500 Index has return of 10%. It is very beneficial type of insurance.