Define Fixed Annuity

Fixed annuities are insurance products which protect against loss and generally offer fixed rates of return.

Define fixed annuity. A fixed annuity is the most straightforward annuity type as it pays a predetermined interest rate on your account balance. Assume youd like to invest in a vehicle that will provide you with guaranteed monthly payments of 1167 every month for as long as you live after you retire. əˈnjuːɪtɪ.

Traditional Fixed Annuity. A fixed annuity is a contract between a policyholder and an insurance company. A fixed annuity is a type of insurance contract that promises to pay the buyer a specific guaranteed interest rate on their contributions to the account.

However with an index annuity the annual growth is bench-marked to a stock market index eg Nasdaq NYSE SP500 rather than an. The insurance company guarantees your principal and a minimum interest rate. A fixed annuity offers a fixed rate of return and all its future payments are equal amounts.

It shares features with fixed deferred interest rate annuities. A fixed annuity is an insurance contract that pays a guaranteed rate of interest on the owners contributions and later provides a guaranteed income. Annuities may also be immediate or deferred.

Commutation A process provided under some annuities that allows annuity payments to be terminated and the remaining value to be withdrawn from the contract. European governments funded most of the wars of. Charitable Annuity Gift Annuity A charitable gift annuity is a contract between a donor and a foundation under which the foundation guarantees payment of an annuity.

In exchange for a lump sum or a series of payments the insurance company provides a set amount of income starting at a future date. A fixed annuity is a contract between you and an insurance provider. The type of annuity you buy determines your future annuity payments.