Safe like a CD, but with a better return...
A Fixed Annuity is a contract between the insurance company and a policy holder. The policy allows you to earn a fixed percentage for placing your funds into a fixed annuity contract for a set period of time. Could be 5, 7, or 10 years, depending on the contract. The Fixed Annuity is the most conservative annuity there is.
Usually a Fixed Annuity is for the individual who wants nothing to do with the market and just wants a safe, steady fixed rate for a number of years. The policy holder knows the exact rate of return he or she is getting from the company.
The Fixed Annuity also provides
- Tax Deferred Growth
- Avoids Probate
- Rate of Return
Want the same safety as a Fixed Annuity but more possibility for gain? Look no further, an Equity Indexed Annuity might be the right fit for you!