Glossary

RILA

A deferred annuity, registered as a security, whose returns track a market index with partial downside protection and capped upside.

Also called: registered index-linked annuity, buffered annuity, structured annuity, index-linked variable annuity

A RILA (registered index-linked annuity) is a deferred annuity that credits returns based on a market index such as the S&P 500, but unlike a fixed indexed annuity, it can lose money. In exchange for accepting some downside, buyers typically get higher caps or participation rates. Because owners bear investment risk, RILAs are registered with the SEC as securities and sold with a prospectus by FINRA-registered representatives.

Downside protection comes in two main forms. A buffer absorbs the first slice of losses: with a 10 percent buffer, the insurer covers the first 10 percent of an index drop and you absorb the rest. A floor limits your maximum loss: with a 10 percent floor, you lose no more than 10 percent. Hypothetically, if the index falls 25 percent over a term, a 10 percent buffer leaves you down 15 percent, while a 10 percent floor leaves you down 10 percent. Upside is limited by a cap rate or participation rate.

RILAs are complex and usually carry multiyear surrender charges. Index returns typically exclude dividends, and values taken before the end of a crediting term may be adjusted by an interim value formula. Compare them with fixed indexed and variable annuities, and read the prospectus. See Registered index-linked annuities (RILAs): buffers, caps and risk.

Last reviewed October 4, 2026

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Related terms

Indexed annuity A fixed annuity whose interest is tied to a market index's gains, limited by caps or participation rates, with a floor that shields it from index losses. Variable annuity An annuity whose value is invested in market subaccounts, so it can grow or lose money, with optional riders that guarantee income or a death benefit. Cap rate The maximum rate an indexed universal life policy or indexed annuity will credit for a period, no matter how much the linked index rises. Floor The minimum rate an indexed universal life policy or indexed annuity credits for a period, often 0%, so index losses don't reduce the credited interest. Surrender charge A fee deducted from a policy's or annuity's value if you cancel or withdraw too much in its early years, usually shrinking each year. Participation rate The percentage of an index's gain that an indexed annuity or IUL policy credits as interest, such as 80% of a 10% rise, or 8%.

Related guides

Annuity fees, explained The charges inside annuities: M&E, admin, fund and rider fees, surrender charges, commissions, and costs built into fixed rates. Guaranteed lifetime withdrawal benefit riders A GLWB rider promises withdrawals for life from an annuity even if the account runs out. How the benefit base, withdrawal percentage, roll-ups and fees work. Registered index-linked annuities (RILAs): buffers, caps and risk A RILA links returns to an index with caps and buffers or floors, but you can lose money. How the downside protection works, the SEC rules and who it suits.

Related insurers

Athene Apollo-owned retirement company in West Des Moines, Iowa; a top U.S. annuity seller that no longer sells life insurance but still services older life blocks. Brighthouse Financial MetLife's former U.S. retail life and annuity arm, spun off in 2017; it sells annuities and a few life policies and agreed in 2025 to be bought by Aquarian. Jackson National Life A Lansing, Michigan, annuity company owned by NYSE-listed Jackson Financial; it stopped selling life insurance in 2012 and now runs acquired life blocks. Transamerica Aegon's U.S. life and retirement company, selling term, indexed universal and final expense coverage through agents, including its WFG network.

Related annuity companies

Allianz Life Minneapolis-based U.S. arm of Germany's Allianz SE, a long-time leader in fixed index annuities that also sells registered index-linked annuities. Athene Apollo-owned annuity specialist in West Des Moines, Iowa, and the largest U.S. individual annuity writer by 2024 premiums, sold through financial professionals. Brighthouse Financial MetLife's former retail annuity arm, known for Shield index-linked annuities; sold through advisors and agreed in 2025 to be bought by Aquarian Holdings. Corebridge Financial AIG's former life and retirement arm, a top-two U.S. annuity writer issuing through American General Life, and set to merge with Equitable by end of 2026. Equitable A New York insurer that created the buffered annuity in 2010 and sells RILAs, variable annuities and a MYGA through advisors; merging with Corebridge. Global Atlantic KKR-owned annuity group whose Forethought Life sells fixed, fixed index, RILA, variable and income annuities through banks and broker-dealers.