Fixed Annuities

A fixed annuity is a type of life annuity. Annuities are financial products sold by insurance companies that make a series of future payments to a buyer in exchange for the immediate payment of a lump sum (single-payment annuity)  or a series of regular payments (regular-payment annuity), prior to the onset of the annuity.  When the annuity is annuitized, the insurance company makes guaranteed payments to the buyer (annuitant ) for the life of the buyer.  This is a great tool to use for retirement since the buyer can never outlive his income stream from the annuity.

There are two phases to an annuity, the accumulation phase, and the distribution phase.  It is possible to structure an annuity contract so that it only has a distribution phase.  This is called an immediate annuity.

Annuities that make payments in fixed amounts or in amounts that increase by a fixed percentage are called fixed annuities.  Variable annuities, by contrast, pay amounts that vary according to the investment performance of a specified set of investments like the stock market.

Paula can shop for the best products from many reputable insurance companies including:

  • Genworth Life and Annuity
  • Allianz
  • Prudential
  • Mass Mutual
  • Met Life
  • Mutual of Omaha
  • Prudential
  • Jackson Life

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