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 ?
While there is no existing federal authority permitting this oversight, we must watch carefully and act when necessary to ensure oversight of the sale of fixed annuities remains the job of the state insurance departments.
In the fourth quarter, sales of Western National's fixed annuities reached $1.
Whether immediate or deferred, fixed annuities are guaranteed by the companies issuing them.
Bonds sells cheaper fixed annuities but says she recommended the more expensive variable annuity primarily for the guarantee.
Fixed annuities are an option some people consider for retirement income.
And, since most supplemental plans cover small groups of employees, fixed annuities that allow the employer to participate in gains and losses relating to mortality and interest assumptions usually are not available.
Annuity supporters are fighting to ensure that fixed indexed annuities get treated the same as other fixed annuities and not lumped in with securities products under the Department of Labor's fiduciary rule.
And, most fixed annuities allow a client to convert his or her annuity into a lifetime guaranteed income stream without incurring a surrender charge.
This elevated the bank channel to the second largest distribution channel in the industry for fixed annuities behind the independent agent channel.
Strong sales were supported by a surge in sales of fixed annuities.
This multi-state settlement pertains to fixed annuities issued from 2001 through 2008.