Fixed annuities


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Related to Fixed annuities: immediate annuity, deferred annuity, Variable annuities, Income Annuities, Indexed Annuities

Fixed annuities

Contracts in which an insurance company or issuing financial institution pays a fixed dollar amount of money per period.

Fixed Annuity

An annuity that allows the annuitant a fixed return for the life of the annuity. Like any annuity, the annuitant buys into a policy, either with a lump sum or premiums over a period of time. When the annuitant reaches a certain age, or retirement (whichever is greater), he/she begins to receive payments. Typically, the insurance company issuing a fixed annuity invests the premiums in low-risk investment vehicles such as bonds. This results in a smaller likelihood that the insurance company will be unable to make the payments, but also exposes the annuitant to inflation risk. See also: Variable annuity.
References in periodicals archive ?
Meanwhile, fixed annuities, the specialty of AnnuityAdvantage, have hit sales numbers not seen in five years, according to data released by the Insured Retirement Institute.
That conventional wisdom is being brushed aside as more people under 50 add fixed annuities to their retirement income strategy.
If the supplemental promise is a defined benefit, fixed annuities are purchased based on the benefit accrued at the time of purchase.
This elevated the bank channel to the second largest distribution channel in the industry for fixed annuities behind the independent agent channel.
The settlement is a result of a multi-state examination which investigated Allianz s marketing and suitability of fixed annuities between the years 2001 and 2008.
A key element to this end is using the right words when describing the features and benefits of fixed annuities.
Fixed annuities are an option some people consider for retirement income.
Bonds sells cheaper fixed annuities but says she recommended the more expensive variable annuity primarily for the guarantee.
Whether immediate or deferred, fixed annuities are guaranteed by the companies issuing them.