Only Variable Annuities are exposed to market declines. Fixed, Deferred, and SPIAs are not subjected to maket declines, as those funds are not directly connected to the market. With a Fixed Index Annuity, the annuitant has the best of both worlds; 1) guarantee on the principal, and 2) upside market gains based on an index tied to the S&P 500. When the market declines, a Fixed Index Annuity holds at zero and will not decline in value. It’s known as “zero is your hero”.