Investors who want to benefit from stock market gains but limit the impact of its losses are increasingly turning to registered index-linked annuities.
Like other annuities, RILAs are insurance contracts that involve handing over money in exchange for a payout, often at a later date. As the name suggests, a RILA’s performance is based on a stock market index (or multiple indexes). They come with limits on both the loss and growth sides.
“It’s like putting bumpers in a bowling lane — you’re limited on both sides,” said certified financial planner Jessica McNamee, founder and wealth management advisor for Sirius Wealth Strategies in Bellefontaine, Ohio.
Sales of RILAs reached an estimated $20.6 billion in the third quarter, a 20% jump from the same period in 2024, according to recent research from LIMRA, an insurance and financial services trade group.
This year through Sept. 30, sales were 18% higher than the same time last year, at $57.3 billion. LIMRA expects sales to exceed $80 billion in both 2026 and 2027, said Keith Golembiewski, assistant vice president and head of LIMRA annuity research.
