RILA buffered annuity refers to a registered index-linked annuity design that uses loss buffers to absorb a specified percentage of index declines before the contract value participates in losses. For example, a 10 percent buffer strategy protects against the first 10 percent of negative index performance over a term, while losses beyond that amount reduce account value, subject to any additional floors. Upside is typically limited by caps or participation rates. Buffered RILA annuities appeal to investors who want some downside protection but are willing to accept limited losses and capped gains in exchange for potential higher returns than traditional fixed products.

When presenting RILA buffered annuities, advisors focus on how buffer levels, caps, and term lengths interact to shape possible outcomes. They use scenario charts to show what happens in flat, moderately negative, and sharply negative markets, emphasizing that buffers do not eliminate all risk. Product comparisons may highlight trade-offs between deeper buffers with lowercase and shallower buffers with higher growth potential. Suitability reviews document that clients understand the structured risk profile and the importance of holding the contract for full terms. Clear explanation of RILA buffered annuity mechanics helps prevent misconceptions that buffers guarantee principal or eliminate market risk.