What are the different types of fixed annuities?

Fixed annuities can be divided into three broad types: traditional, index and multi-year guaranteed. Traditional fixed annuities, also known as guarantee fixed annuities, accumulate money based on a fixed interest rate set at the beginning of your contract.

What is a fixed annuity?

A fixed annuity is a type of annuity contract that provides a guaranteed return on contributions you make as a lump sum or over a set period of time. The period you make contributions to a fixed annuity is referred to as the accumulation phase, and the period in which you make withdrawals is called the distribution phase.

How long do fixed annuities last?

When you sign up, you pick how many years you want the fixed annuity to last, typically between three to 10 years. The insurance company then guarantees to pay you the annuity interest rate over this period. There are two other types of annuities to choose from: variable annuities and fixed index annuities.