Fixed annuities are financial products that provide a guaranteed rate of return for a set number of years.
How do fixed annuities work?
You may be asking yourself, “what is a fixed annuity?” A fixed annuity has two phases–accumulation and income. During the accumulation phase, you build money and contribute to your annuity, as it earns interest at a fixed rate. When you are ready to begin the income phase, those funds can be turned into a guaranteed stream of payments that can help take your financial above and beyond.
What are the advantages?
Protection from loss
Regardless of market conditions, you won’t lose the money you contribute to your fixed annuity unless you take a withdrawal or surrender your annuity during its early withdrawal charge period.
Steady, predictable growth
A fixed annuity earns interest at a guaranteed rate, meaning you know exactly how much your money will grow over time.
The interest your fixed annuity earns grows tax-free until you start receiving payments or take a withdrawal, giving your fixed annuity the ability to grow at a faster rate.
When you’re ready to turn the money you’ve accumulated in your annuity into guaranteed income, you can select from a variety of options, including payments that will last for the rest of your life.
Take your financial future above and beyond
If you’re looking to protect your principal while earning predictable interest at a rate that will never go down, fixed annuities may be the right choice. If you're interested in other benefits, we also offer immediate, fixed-indexed and registered index-linked annuities.