Learn and Plan | How FIAs are equipped to face a bear market
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How FIAs are equipped to face a bear market

Mar 30, 2023, 6:03:13 PM | Reading Time: 5 minutes

When a bull charges, it thrusts its horns into the air. When a bear attacks, it swipes its paws downward. These animal actions are used to represent the way the market moves.

A bear market occurs approximately every five years. The average decline is 39%, and the average duration is 18 months. When the market goes bear, both good and bad company stocks tend to go down. This can be painful for the economy and investors. The concern with a bear market during retirement is that your assets could lose value. So, how can you make the most out of the 2020 bear market?

One answer is to consider a fixed index annuity (FIA), which a product made for times like these. FIAs offer the opportunity for tax-deferred growth, and many give you the option to generate guaranteed, lifetime income within the same product while protecting your premium from market volatility. In other words, FIAs could be a great option because they have upside potential with no risk of losing premium due to market downturns. In the middle of a bear market, you'll want stability and safety, as well as the opportunity for potential growth.

Benefits of fixed index annuities in a bear market

Fixed index annuities (FIA) can be a valuable planning vehicle for retirement savings. They offer protection from market downturns and guarantees that you expect along with growth opportunities to help build your retirement savings. They provide tax deferral, liquidity options, annuity payout options, full accumulation value at death, ability to avoid probate, and a fixed account option.


A fixed index annuity’s ability to not lose premium is one of its most important benefits.

Low risk

When stocks and other investments decline due to market volatility. FIA’s offer a unique opportunity to earn interest linked to the growth of various stock market indices without experiencing the downside risk. The interest credits for a fixed index annuity will not mirror the actual performance of the index itself, but rather the index closes are used as a basis for determining what the interest credits will be. Take a look below at where FIAs fit with other investment products in light of risk.

fixed indexed annuity FIA graph



FIAs are an insurance product that can help create a foundation of conservative growth, but they also work as a sound financial strategy to help guarantee you have a stream of income payments for as long as you live.

Flexible use

Depending on your contract, you may be able to start receiving annuity payments within a year of purchasing an FIA, or you can defer the payments to a later date. 

Talk to a financial professional about bear market moves

To find out more about how a fixed index annuity can offer upside potential with downside protection from market losses, it’s a good idea to contact a financial professional. To find the right financial agent who fits your needs, submit your information through our find an agent page.

1.Source: https://www.midlandnational.com/fiaprotection

Sammons® Financial Group, Inc.’s member companies, including Midland National® Life Insurance Company. Annuities and life insurance are issued by, and product guarantees are solely the responsibility of, Midland National Life Insurance Company.

Fixed index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders could under certain scenarios exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.

This information is provided for general reference purposes and should not be viewed as investment advice or as a recommendation for a specific allocation. Neither Midland National, nor any agents acting on its behalf should be viewed as providing legal, tax or investment advice. Clients should always consult with and rely on their qualified advisor.

The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.


REV 6/2020