The 60-second version
- There are four ARHQ core types: MYGA, FIA, SPIA, and DIA. Start there before reading marketing labels.
- Pick by job: guaranteed fixed growth, protected index-linked growth, income now, or income later.
- MYGA and FIA protect principal from market losses; SPIA and DIA convert premium into guaranteed income.
- Bonus and hybrid usually describe features layered onto MYGAs or FIAs. Variable annuities are a separate market-risk category ARHQ does not track as a live-rate core type.
Type 1 - fixed rate
What is a fixed annuity (MYGA)?
A fixed annuity credits a declared interest rate. The common rate-shopping version is the multi-year guaranteed annuity, or MYGA, where the carrier guarantees a rate for a chosen term.
In one sentence
| How it grows | Income timing | Principal | Where to compare |
|---|---|---|---|
| Guaranteed fixed rate for the term. | Usually later, through withdrawals, renewal, exchange, or annuitization. | Protected from market losses. | MYGA guaranteed rates |
See today's top MYGA rates
Compare current guaranteed rates by 3-, 5-, 7-, and 10-year term with AM Best context.
Type 2 - protected index-linked growth
What is a fixed index annuity (FIA)?
A fixed index annuity credits interest from an index formula, such as an S&P 500 annual point-to-point cap. A down index year can credit zero, but the index loss does not directly reduce the protected account value.
In one sentence
| How it grows | The catch | Principal | Where to compare |
|---|---|---|---|
| Index-linked credits through a contract formula. | Caps, participation rates, spreads, terms, and rider costs can limit the result. | Protected from index-year losses. | FIA cap and participation rates |
See today's top FIA cap rates
Compare cap leaders separately from participation-rate leaders so the metric stays honest.
Type 3 - income now
What is an immediate annuity (SPIA)?
A single premium immediate annuity converts a lump sum into a scheduled income stream that starts quickly, often within a year. The payment can be for one life, two lives, a period certain, or other payout designs.
In one sentence
| How it grows | Income timing | Liquidity | Where to compare |
|---|---|---|---|
| It is primarily a payout contract, not an accumulation account. | Income now. | Premium is generally committed to the payout option. | SPIA income quotes |
Run a SPIA income quote
Compare income by premium, age, state, life type, and payout option when the live quote path is available.
Type 4 - income later
What is a deferred income annuity (DIA)?
A deferred income annuity works like an income annuity with a waiting period. You fund it today, then income starts at a future age or date. A DIA purchased inside an IRA to start late in life may be structured as a QLAC.
In one sentence
| How it grows | Income timing | Special form | Where to compare |
|---|---|---|---|
| It is primarily a future payout contract. | Later, at the start date you choose. | QLAC when designed for qualifying late-life IRA income. | DIA and QLAC options |
See deferred income options
Compare future income paths by premium, current age, and income start age.
Do not get confused
Are bonus, hybrid, and variable annuities separate types?
These words often appear in sales conversations as if they were separate annuity types. Usually they are features layered onto one of the four core types, or they are a separate market-risk product category.
| Term you will hear | What it actually means |
|---|---|
| Bonus annuity | A premium-bonus feature, often on a MYGA or FIA. It may come with a longer surrender period, lower base economics, or other tradeoffs. |
| Hybrid annuity | Usually an FIA with an income rider. Evaluate the FIA crediting terms and the rider payout rules separately. |
| Variable annuity | A different market-risk category with subaccounts that can lose value. ARHQ does not track variable annuities as a core live-rate category. |
Put it together
How do you choose the right type of annuity?
You rarely have to pick one type forever. A common retirement plan compares accumulation types for protected growth and income types for the portion of money meant to become a guaranteed paycheck.
| If your priority is... | Start with | Then check |
|---|---|---|
| A guaranteed fixed rate and principal protection. | MYGA | Term, guaranteed rate, AM Best rating, surrender period, and renewal rules. |
| Protected growth with index-linked upside. | FIA | Cap, participation rate, index, term, rider charges, and floor. |
| A lifetime paycheck starting soon. | SPIA | Age, premium, state, life type, payout option, and whether annuitization fits. |
| A larger paycheck starting later. | DIA | Income start age, payout option, QLAC rules if qualified money is involved, and beneficiary design. |
Match the four types to your inputs
Jump back to the matcher to see the ranking, comparison table, and same-premium chart move together.
Quick answers
Frequently asked questions
What are the four main types of annuities?
AnnuityRatesHQ organizes the core comparison around MYGA, fixed index annuity (FIA), single premium immediate annuity (SPIA), and deferred income annuity (DIA). Bonus and hybrid labels are usually features layered onto a core type.
Do I have to annuitize to get lifetime income?
No. Annuitization through a SPIA or DIA is one path, but many fixed index annuities can pay lifetime income through a guaranteed withdrawal rider while account-value mechanics continue under the contract rules.
Which annuity types protect principal from market losses?
MYGAs and fixed index annuities protect principal from direct market losses. A MYGA credits a fixed guaranteed rate. An FIA can credit zero in a poor index year, but the index loss does not directly reduce the protected account value.
Is a bonus annuity a separate type?
Usually no. A bonus is a premium-bonus feature added to a MYGA or FIA. Compare the net economics, including surrender period, renewal terms, and any lower base rate or rider tradeoff.
Does AnnuityRatesHQ track variable annuities?
No. Variable annuities are a different market-risk category with subaccounts that can lose value. ARHQ focuses its live comparison pages on MYGA, FIA, SPIA, and DIA products.
Educational only, not financial advice, a quote, or a carrier-approved illustration. MYGA and FIA rate teasers use live CANNEX-backed data through AdvisorWorld and are labeled by metric. SPIA and DIA income teasers remain unavailable until the hardened income endpoint is ready. Chart assumptions are illustrative and should be confirmed with a licensed professional. Annuity guarantees are backed by the issuing carrier's claims-paying ability and are not FDIC insured.