An indexed annuity with increasing income benefits offers a balance between growth potential and income security. Unlike traditional fixed annuities, it’s tied to market indices like the S&P 500, providing growth opportunities based on market performance while guaranteeing a minimum interest rate. This makes it attractive for those cautious about market volatility. The increasing income feature allows payments to grow over time, often linked to inflation. It’s important to consult a financial advisor to fully understand the benefits of these complex instruments.