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Fixed Indexed Annuities

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Enjoy principal protection with the potential for growth, and if needed, income for life.

The Protective® Indexed Annuity II fixed indexed annuity may be right for you if you're looking for:

  • Principal protection with the potential to earn an attractive rate of return without being directly invested in the market
  • An optional protected lifetime income benefit providing a monthly "paycheck" guaranteed to grow each year income is deferred (up to 10 years)

See fixed indexed annuity rates offered through Schwab.

Protective® Indexed Annuity II is not available in New York.

Contact an annuity specialist at


Protective® Indexed Annuity II offers:

  • *Optional protected lifetime income benefit is available for an additional cost.

Protective® Indexed Annuity II overview

Protective Life Insurance Company
Financial strength—Standard & Poor's1
Maximum issue age
Minimum initial purchase
Maximum purchase
Additional purchase
Additional purchase payments are welcome when initiated before the first contract anniversary and received before the oldest owner or annuitant turns 86. The minimum additional purchase payment amount is $1000.
Initial cap rate guaranteed periods
Five or seven years. After the initial guaranteed period expires, renewal interest rates and caps will be declared on each contract anniversary. The renewal rates and caps will never be less than the minimums stated in the contract.
Withdrawal charge schedules
5-Year Withdrawal Charge Schedule
Year 1 2 3 4 5
Charge 9% 9% 8% 7% 6%

7-Year Withdrawal Charge Schedule
Year 1 2 3 4 5 6 7
Charge 9% 9% 8% 7% 6% 5% 4%

In California, the 5-year withdrawal charge schedule is 9%, 8%, 7%, 6%, 5%. The 7-year withdrawal charge schedule is 9%, 8%, 7%, 6%, 5%, 4%, 3%.

The withdrawal charge period will always equal the initial interest rate guarantee period. For example, the 5-year initial interest rate guarantee period will have a 5-year withdrawal charge period and the 7-year initial interest rate guarantee period will have a 7-year withdrawal charge period.

Interest-Crediting Options
The initial interest rates and caps will depend on the initial guaranteed period chosen and the total of all purchase payments received (minus withdrawals and applicable withdrawal charges) in the first year. The breakpoints are:
  • Less than $100,000
  • $100,000 and more
Index-Linked Option (at issue)3
S&P 500® Index
Annual Rate Cap for Term
Every year, after the completion of the withdrawal charge period, you will have the option to renew into the annual point-to-point strategy or fixed account. Other options may also be available, please contact the service center for details.
Guaranteed Minimum Surrender Value
A minimum surrender value is guaranteed when the contract is terminated due to full surrender, death or annuitization. This amount is calculated by:
  • Taking 100% of aggregate purchase payments accumulated at the contract's non-forfeiture rate, which cannot be less than 1% or more than 3%, and
  • Subtracting any prior aggregate withdrawals (including withdrawal charges) accumulated at the non-forfeiture rate, and
  • Subtracting any withdrawal charges that apply at termination.
Access to your money


You can withdraw 10% of your initial purchase payment during the first contract year with no withdrawal charge or market value adjustment. After that, you can withdraw 10% of the contract value annually on each withdrawal date, minus any free withdrawal already taken since the prior contract anniversary. 

Because any interest earned from the performance of the indexed strategy is not credited until the last day of the contract year, any withdrawals from the indexed interest crediting strategy (regardless if they are subject to withdrawal charges) do not earn interest for the contract year in which the withdrawals are taken

All withdrawals reduce the annuity's remaining death benefit, contract value, cash surrender value, future earnings and lifetime payment amount.

Withdrawals may be subject to income tax and, if taken prior to age 59½, an additional 10% IRS tax penalty may apply. More frequent withdrawals may reduce earnings more than annual withdrawals.

In addition to withdrawal charges, a market value adjustment (MVA) is applied to withdrawals that exceed the allowable penalty-free amount. The MVA can either increase or decrease or have no effect on your requested withdrawal amount. The
MVA does not impact your minimum surrender value, and will not apply once the withdrawal charge period has expired. If you surrender your contract, you will receive the greater of the surrender value or the minimum surrender value.4,5


Death Benefit
Should you pass away before starting your annuity income payments, as of the date Protective Life receives the proof of death, your beneficiaries will receive the contract value or the minimum surrender value.
Additional Benefits

Protective Indexed Annuity II offers an optional protected lifetime income benefit, SecurePay SE, that’s designed to help you create a solid retirement income plan. For an additional cost, it offers:

  • Guaranteed annual benefit base growth, with a 7% simple interest roll-up for up to 10 contract years
  • Opportunities to enhance income with interest crediting strategy gains
  • Lifetime retirement income with guaranteed annual withdrawals, available on a single or joint life basis

The cost is deducted from your contract value quarterly as a percentage of your benefit base. The cost is described in detail in the product contract.

Questions? We're ready to help.

Annuity specialists are available to help you meet your goals.


Speak with an annuity specialist


Fixed indexed annuity frequently asked questions

  • What is a fixed indexed annuity?

    A fixed indexed annuity is a long-term investment that provides principal protection, guaranteed lifetime income, and the opportunity for growth from a fixed interest rate or interest based on the performance of an external index. Assets are not directly invested in an external index, and interest is tax-deferred. For an additional cost, a fixed indexed annuity may also offer an optional guaranteed lifetime withdrawal benefit (GLWB) that provides guaranteed lifetime income for you and your spouse. A GLWB can provide a monthly "paycheck" for you and your spouse that is guaranteed to grow each year income is deferred (up to 10 years).

  • When might fixed indexed annuities be a good option for your situation?

    A fixed indexed annuity may be a good option for you if you're looking for principal protection with the opportunity to earn an attractive rate of return. Also, if you're concerned about outliving your retirement assets, a fixed indexed annuity provides guaranteed income for a specific period or life, depending on your needs.

  • What other factors should you be aware of when considering a fixed indexed annuity?

    A fixed indexed annuity may have withdrawal or surrender charges (a charge on an early withdrawal based on the guaranteed period of the policy or cancellation of the policy), and some contracts may impose a market value adjustment if you make a withdrawal during one or more of the guaranteed periods offered under the policy. Generally, any withdrawals in a given year during the initial guaranteed period that exceed 10% of your account value will be subject to withdrawal charges and/or a market value adjustment.

    Withdrawals from a fixed indexed annuity will reduce the value of your annuity and can be subject to ordinary income tax. Withdrawals prior to age 59½ may also be subject to a 10% federal tax penalty.

    A Schwab Financial Consultant can help you determine which annuity might fit your retirement strategy.

All guarantees depend on the claims-paying ability and financial strength of the issuing insurance companies, not Schwab.

The decision to purchase an annuity within a qualified plan or IRA should not be based on the annuity's tax-deferred accrual feature, as this is already provided by the annuity or qualified plan itself.

Charles Schwab & Co., Inc. ("Schwab"), a licensed insurance agency, distributes certain insurance and annuity contracts that are issued by insurance companies that are not affiliated with Schwab. Not all products are available in all states.

  1. 1. Current published financial strength ratings confirmed as of 2020. Standard & Poor's ratings range from AAA to CC. Ratings are subject to change. While ratings can be objective indicators of an insurance company's financial strength and can provide a relative measure to help select among insurance companies, they are not guarantees of the future financial strength and/or claims-paying ability of a company.
  2. 2. Total amounts of more than $1 million require Protective Life home-office approval in advance. Protective Life reserves the right to change the minimum and maximum amounts.
  3. 3. Because the beginning index value for each portion of the initial purchase payment allocation is determined by the date the portion is applied, multiple index performance percentages may be calculated during the first contract year. On the first and on every subsequent contract anniversary, Protective Life determines the next contract year’s beginning index value for each indexed interest crediting strategy. Unlike with the fixed and indexed interest crediting strategies, the interest rate for the holding account is determined as of the date each additional purchase payment is applied to the contract.
  4. 4. The withdrawal charge and the MVA may be waived for required minimum distribution (RMD) withdrawals (only if calculated by by Protective Life), withdrawals after the first contract year if you are diagnosed with a terminal illness (life expectancy of 12 months or less and not available in California), withdrawals after 90 days of contract issue if you are confined to an accredited nursing home for 30 days or more, as long as the confinement to a nursing home began after the contract was issued (not available in Massachusetts), death benefit proceeds, annuity income payments (available after the first contract year; an MVA may apply), and withdrawals up to the Annual Withdrawal Amount under the optional SecurePay SE Protected Lifetime Income Benefit. Please refer to the SecurePay SE brochure for more details and the exact withdrawal percentages you are able to take without a charge or MVA. For Index-Linked Options, no interest is earned or credited on amounts withdrawn prior to the end of an index term. Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge and an MVA also may apply. Withdrawals will reduce the contract value and the value of the death benefits, the Guaranteed Minimum Surrender Value, and also may reduce the value of any optional benefits.
  5. 5. In addition, Protective will waive the withdrawal charge and MVA if you or your spouse should become unemployed. In order to qualify, you or your spouse must meet the following requirements: (1) employed fulltime on the contract issue date, (2) unemployed for a period of at least 60 consecutive calendar days prior to claiming the waiver, (3) unemployed on the date when the full surrender or partial withdrawal is requested This waiver is not available in the Connecticut.

Fixed annuities issued by Protective Life Insurance Company (Brentwood, TN) are available through licensed, independent third parties.

The S&P 500® Index is a product of S&P Dow Jones Indices LLC ("SPDJI"), and has been licensed for use by Protective Life Insurance Company. Standard & Poor's®, S&P®, and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Protective Life. Protective Life's product is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties makes any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index.

The index is not available for direct investment, and index performance does not include the reinvestment of dividends.

Protective Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products. Only an advisor who is also a fiduciary is required to advise whether the product purchase and any subsequent action taken with regard to the product are in their client's best interest.

Contract Form Series: FIA-P-2010 and FIA-P-2011 and state variations thereof.
Rider Series: FIA-P-6022 and state variations thereof.