Fixed annuities


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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 ?
More than 60% of the respondents indicated an interest in selling insurance products online, determining that term life insurance and fixed annuities would be the most appropriate products for e-commerce.
iGO STP for Fixed Annuities enables carriers to leverage straight-through processing, reduces cycle time for fixed annuity applications, and speeds policy issuance.
IRI President and CEO Cathy Weatherford said in a statement that solid full-year sales for fixed annuities show that demand for the kinds of solutions offered by annuities still exists.
Further, since there is no tax on interest until annuity proceeds are distributed, the tax-adjusted return for fixed annuities is more like 4.
As part of a client's diversified portfolio, fixed annuities can provide an effective means of securing a portion of the investor's assets while accumulating tax-deferred interest," said Steve Kluever, senior vice president, product management, Jackson National Life Distributors LLC (JNLD).
The American Council of Life Insurers, the National Association of Insurance and Financial Advisors, the Indexed Annuity Leadership Council, the National Association of Fixed Annuities and an insurance agency, the Market Synergy Group, have all filed lawsuits against DOL.
For the insurance sales industry as a whole, sales of fixed annuities dropped 10 percent in the first quarter, matching the experience of the banking industry's programs.
In fact, according to LIMRA, fixed annuities outsold variable annuities for the second quarter in a row: $35.
But 4Q will be remembered as the time that captive agents and broker-dealers truly became important for the distribution of fixed annuities, partly to compensate for falling sales of variable annuities.
4 billion of fixed annuities last year, up 78% from 2000, according to data compiled by Kenneth Kehrer Associates, a consulting firm in Princeton, N.
Research Shows Retirees and Near-Retirees Can Benefit from Fixed Annuities But Most Do Not Own, Know About or Understand Fixed Annuity Products