Why are Fixed Index Annuities Called “Hybrids”?

People call and ask me the uneducated question, “What’s your best hybrid?”, and my answer is always the same.  I respond by saying that I really like Toyota, but Honda and Volkswagen have excellent hybrids as well.  Get it?  Hybrid is a car, hybrid is a plant, but hybrid is NOT an annuity.  Most of the time, Fixed Index Annuities (FIAs) are the product that is used with the word hybrid. This is an issue that makes the top of my head blow off, and is a prime example of how the annuity industry has earned its bad reputation.

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