RILA = Registered Index-Linked Annuity

RILA is a type of annuity that provides the potential for higher returns based on the performance of an underlying index, while also offering a level of downside protection. Unlike fixed annuities, RILAs link the return to an equity index, allowing policyholders to participate in market gains while limiting losses through a defined buffer or floor. RILAs are often used as a retirement planning tool for individuals who want some exposure to market growth but with a safety net to manage downside risk.