ANNUITIES
Fixed Annuities
A fixed annuity is an insurance contract designed to provide principal protection and interest credited under the terms of the contract.
How Fixed Annuities Work
The insurer credits interest according to the contract. Rates may be guaranteed for a defined period or may reset subject to contract minimums, depending on the product.
What to Consider Before You Choose
- Compare the guarantee period with the surrender-charge period.
- Review withdrawal provisions and any market value adjustment that may apply.
- Understand the guaranteed minimums as well as the current credited rate.
- Consider the financial strength of the issuing insurance company.
Who Often Considers Fixed Annuities
Fixed annuities can fit someone who prioritizes principal protection and predictable interest over direct participation in stock-market gains.