FIA vs. MYGA: Mechanics, Client Fit and Starting Comp
Updated October 2026
Short answer: FIA vs. MYGA comes down to how interest is credited. A MYGA credits a fixed interest rate guaranteed for the full term. A fixed indexed annuity (FIA) credits interest linked to a market index, limited by caps, participation rates or spreads, with a 0% floor. MYGAs fit clients who want a known rate for a set period; FIAs fit longer horizons, upside potential and income riders. Starting comp is typically higher on FIAs.
Our job is to beat your current annuity commission.
Stuck at your current commission level, or simply want higher commission? Our sole purpose is to scale your business by beating your current commission levels. No matter your current commission level, if you meet our minimum requirements (solo producers have none), you automatically get higher commission than where you are today. Starting comp is for every producer, including new producers with no experience — there is no production minimum. If you have strong production to show, we contract you above our starting comp. Established agencies, financial advisors and financial firms, and healthcare agencies can earn much higher too. Submit your application, schedule a Zoom, and we review your current commission levels carrier by carrier and contract you above them — with full back office support, case management, carrier contracting and sales tools included.
What is a MYGA?
A multi-year guaranteed annuity (MYGA) is a fixed deferred annuity that locks one credited rate for the entire guarantee term. The client knows on day one exactly what the contract will credit each year, and interest grows tax-deferred until it's withdrawn.
Key mechanics to explain at the table:
- Surrender charges apply to withdrawals above the free amount during the term. The NAIC's buyer's guide notes the percentage usually declines each year until the surrender period ends.
- Free withdrawals vary by product. Some MYGAs allow a percentage of value each year; others limit free access to credited interest.
- Market value adjustment (MVA) on some contracts can raise or lower an early withdrawal, depending largely on how interest rates have moved since purchase.
- End of term brings a decision window: renew, move the money through a 1035 exchange or transfer, annuitize, or withdraw. Window length and renewal rates vary by carrier.
What is a fixed indexed annuity?
A fixed indexed annuity (FIA) credits interest based on the movement of an external index, measured over a set term by a crediting method such as annual point-to-point or monthly averaging. Gains are limited by the strategy's moving parts:
- Cap rate: the maximum interest the strategy can credit for the term.
- Participation rate: the share of index gain used to calculate the credit.
- Spread (also called margin or asset fee): a percentage subtracted from index gain.
The index-linked credit is guaranteed never to be less than zero, so a down year credits nothing rather than losing value to the index. Index gains are generally calculated without dividends. Many FIAs also offer a fixed-rate account, and many can carry optional income riders for guaranteed lifetime withdrawals.
FIAs are regulated as insurance products by state insurance departments. As the SEC's investor bulletin notes, not all indexed annuities are SEC-regulated; registered index-linked annuities are a separate, securities-registered product.
FIA vs. MYGA: side-by-side comparison
| Feature | MYGA | Fixed indexed annuity |
|---|---|---|
| How interest is credited | One rate, guaranteed for the term | Index-linked credits plus optional fixed account |
| Downside from index losses | None (not index-linked) | None; 0% floor on index credits |
| Predictability | High; return known at purchase | Variable; depends on index and current caps or rates |
| Income riders | Uncommon; varies by product | Common, often for an annual fee |
| Surrender period | Often matches the guarantee term | Often longer; varies by product |
| Typical starting comp (grid) | Around 1%–3.5% | Commonly 7% or more on longer terms |
Which client fits a MYGA vs. an FIA?
When a MYGA fits
- The client wants a guaranteed rate and a defined end date.
- Money is earmarked for a known future need, or the client is building a ladder of staggered maturities.
- The client is comparing bank rates and values simplicity over upside.
- The client doesn't need lifetime income guarantees from this money.
When an FIA fits
- The time horizon matches a longer surrender schedule.
- The client wants a chance at higher credits than a fixed rate offers and accepts that some years may credit zero.
- Guaranteed lifetime income through a rider, or enhanced death benefits, is part of the plan.
- The client understands caps and participation rates can change at each renewal, within contract minimums.
When neither fits
If the client needs the money before the surrender period ends, can't tolerate any early-withdrawal penalty, or has no emergency reserve outside the annuity, the right recommendation may be a shorter term or no annuity at all. Under the NAIC best-interest standard, liquidity needs and time horizon are part of the consumer profile you're required to gather.
How starting comp differs between FIAs and MYGAs
Comp follows product economics. Longer surrender schedules give carriers more time to recover acquisition costs, so longer-term FIAs tend to carry higher starting comp, while MYGAs generally pay less. Both typically step down at older issue ages. Examples from the BetterAnnuityComp.com starting-comp grid:
| Product | Type / term | Starting comp | Issue ages |
|---|---|---|---|
| Athene Performance Elite 15 | FIA, 15-year | 8% | 0–70 |
| SILAC Denali 14 | FIA, 14-year | 8.5% | 0–75 |
| F&G Accelerator Plus 14 | FIA, 14-year | 8.5% | 0–75 |
| Allianz 222+, 360 & Benefit Control+ | FIA, 10-year | 7.25% / 5.25% | 0–75 / 76–80 |
| Talcott EverStead 10 | MYGA, 10-year | 3% | 0–75 |
| Liberty Bankers Heritage Classic 9 | MYGA, 9-year | 3.5% | 18–80 |
Across the grid, 46 of 68 carriers have a top starting rate of 7% or more and 10 start at 8% or more, while MYGAs typically start around 1%–3.5% depending on term and age. Rates are subject to change; confirm current schedules on the annuity commissions page before quoting.
One caution: comp can't drive the product choice. The NAIC model doesn't treat cash compensation itself as a material conflict of interest, but you still have to disclose the sources and types of compensation and show that the recommendation fits the client's profile. A MYGA at 3% that fits beats an FIA at 8% that doesn't, every time it's audited.
Both products are big business
LIMRA reports fixed-rate deferred sales of $165.3 billion and record FIA sales of $127.9 billion in 2025, the fifth straight year of FIA growth. In the first half of 2026, fixed-rate deferred sales were $77.4 billion and FIA sales $57.4 billion. Producers who can position both, and know when to use each, have more ways to say yes to a client.
Practical habits that help: run a MYGA and an FIA side by side in every accumulation review, track maturity dates so renewals don't default silently, and use real-time rate tracking across carriers so your quotes reflect the current market. See the MYGA and fixed indexed annuity pages for carrier lineups.
Frequently asked questions
Can BetterAnnuityComp.com beat my current annuity commission?
That is our sole job: no matter your current commission level, if you meet our minimum requirements (solo producers have none), you automatically get higher commission than where you are today. Starting comp is for every producer, including new producers with no experience, and there is no production minimum. If you have strong production to show, we contract you above our starting comp, and established agencies, financial advisors and financial firms, and healthcare agencies can earn above it too. Submit your application, schedule a Zoom and share your current commission levels by carrier. We compare them carrier by carrier and contract you above them, with full back office support, case management, carrier contracting and sales tools included.
Is a MYGA safer than a fixed indexed annuity?
Both are fixed annuities backed by the issuing insurer's claims-paying ability, and neither loses value when an index falls. The difference is predictability: a MYGA's rate is guaranteed for the term, while an FIA's index credits can be zero in some years. Surrender charges and market value adjustments can reduce early withdrawals from either.
Why is starting comp higher on FIAs than on MYGAs?
FIAs, especially longer-term ones, typically have longer surrender schedules that give carriers more time to recover acquisition costs. MYGAs generally have shorter terms and pay less. On the BetterAnnuityComp.com grid, MYGAs typically start around 1% to 3.5%, while many longer-term FIAs start at 7% or more.
Can a client move a maturing MYGA into an FIA?
Generally yes, through a 1035 exchange or transfer, but it's a new recommendation. The best-interest analysis applies, including whether a new surrender period serves the client and whether the client has had another exchange in the preceding 60 months.
Do FIAs and MYGAs both allow free withdrawals?
Most do, but terms vary. Many deferred annuities allow a limited percentage of value each year without a surrender charge, while some MYGAs restrict free access to credited interest. Always check the specific contract.
Are fixed indexed annuities securities?
Fixed indexed annuities are generally regulated as insurance products by state insurance departments. Registered index-linked annuities are different products that are registered as securities and sold through securities-registered representatives.
Sources
- LIMRA — Final U.S. Retail Annuity Sales Set New Sales High, Totaling $464.1 Billion in 2025
- LIMRA — U.S. Annuity Sales Reach $121.2 Billion in the Second Quarter of 2026
- NAIC — Buyer's Guide for Fixed Deferred Annuities
- SEC Investor.gov — Updated Investor Bulletin: Indexed Annuities
- NAIC — Suitability in Annuity Transactions Model Regulation (#275)
Write FIAs and MYGAs from one contracting relationship. BetterAnnuityComp.com, powered by BetterLifeQuotes.com, works to beat your current annuity commission — starting comp has no experience requirement and no production minimum, and strong producers are contracted higher — across 68 carriers and 345 products, with case management through issue. Solo producers and advisors can apply here, agencies can use the agency application, and you can review every carrier on the annuity carrier list. See how we beat your current commission.