Always refer to your contract

refer to your contract

It’s also important to note that fixed annuities are not influenced by the performance of a portfolio or investment. That’s not the case with variable annuities and indexed annuities that are tied to the market.

Fixed Index Annuity is a fixed rate but attached to the market.

Fixed Index Annuity

Variable Rate Annuity is a fixed rate but attached to the market.

Variable Rate Annuity

As for fixed annuity income payments they can be guaranteed for life. These are also referred to as a life annuity or single-life annuity. When you think of an annuity, this is probably what you envision.

However, you can receive payments for a set number of years, such as for 25 years. These are commonly called period certain annuities or term certain annuities Again, this is spelled out in the terms of the contract.

But, there’s a third option. And, that’s receiving your annuity income benefits in one big payment, aka a lump sum.