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.
Variable Rate Annuity is a fixed rate but attached to the market.
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.
- How Does a Fixed Annuity Work?
- Always refer to your contract
- The Benefits and Criticisms of Fixed Annuities
- Benefits of Fixed Annuities
- The drawbacks of fixed annuities
- Current Fixed Annuity Rates
- Are Fixed Annuities Guaranteed?
- The Differences Between Fixed and Indexed Annuities
- Fixed Annuity Calculator
- Buying a Fixed Annuity