Updated December 12, 2022, at 12:01 PM

Before we get into the next-generation fixed index-linked annuity (FILA) product, let’s cover a brief overview of the index- and securities-linked annuities that preceded the FILA category.

The first generation of fixed indexed annuities (FIAs) launched in the mid-1990s caused a revelation. The magic of an FIA was and is that it essentially gives the client the ability to swap the crediting rate of a fixed deferred annuity for exposure to the performance of an external equity index.