RILA annuity is another term for a registered index-linked annuity, a deferred annuity contract whose returns are tied to one or more market indices, with built-in downside buffers or floors and upside caps or participation limits. As securities products, RILA annuities are subject to SEC regulation and require a prospectus. Clients can experience partial losses of principal when index performance falls beyond the buffer amount, but they benefit from structured protections that may reduce volatility compared with direct market investing. RILA annuities may offer optional income riders or death benefits, adding insurance features to the structured return profile.

Advisors use the phrase "RILA annuity" interchangeably with "registered index-linked annuity" when describing product choices to clients. Discussions focus on how different crediting strategies, term lengths, buffers, and caps affect potential outcomes. Firms often require specialized training before representatives can sell RILA annuities due to their complexity and market risk. Suitability and best-interest documentation must show that clients understand both upside limitations and downside exposure. When positioning a RILA annuity, advisors often contrast it with variable annuities, fixed indexed annuities, and traditional fixed products to clarify where it fits on the risk-return spectrum.