MYGA vs FIA vs SPIA: the five-minute explanation for a life agent adding annuities

A lot of the senior book asks about "something safe for the CD money". Here's the map before you start the licensing and product training.

MYGA (multi-year guaranteed annuity). A fixed rate for a fixed term, three to ten years typically. Tax-deferred growth, a surrender schedule, and usually some free withdrawal allowance each year. The closest thing to a CD in the annuity world, and the easiest to explain.

FIA (fixed indexed annuity). Principal protected with credits tied to an index, subject to caps, participation rates or spreads that the carrier can reset. Optional income riders add a guaranteed lifetime withdrawal benefit for a fee. More moving parts, longer surrender schedules, and the product where suitability and the illustration matter most.

SPIA (single premium immediate annuity). A lump sum becomes a guaranteed income stream, for life or a period certain. Irrevocable. The right answer for someone who wants a paycheck, not a balance.

Things to know before your first case: state suitability and best-interest rules, carrier product training requirements, how a 1035 exchange or an IRA rollover works, and that surrender charges are real money if the client needs the funds early.

If you're placing your first one, post the situation in this room with ages, source of funds and the goal. Not the client.