As deferred income annuities become increasingly popular, some insurance companies are making modifications that will peak the interest of a broader range of consumers. In Insurance News Net’s “Carrier Aims Annuity At Younger...
What is a Fixed Annuity
“CD-type” annuity is a term used to describe a fixed annuity that has an interest rate guarantee for the same period of time as its surrender period. For example, an annuity with a guaranteed interest rate of 5% per year for five years, where there are no surrender penalties after five years. Some offer a higher rate the first year, and a lower, but guaranteed rate, for all subsequent years of the surrender period – e.g. 8.5% first year, with a guaranteed renewal at 4% for years 2-5 for a blended average of 4.88% per year for five years.
ANNUITY FYI’S TOP FIXED ANNUITY PICKS
|Pro Saver Platinum 15|
|Personal Choice Annuity 10|
|Bankers Elite 9|
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FROM OUR BLOG
“Fixed annuities are Fixed. Unlike other types of annuities such as; variable annuities, fixed indexed annuities or even renewal – rated fixed annuities, Multi Year Guaranteed Annuities (MYGAs) pay a constant predictable rate of interest each year during the selected guaranteed period. The investor can spend the interest as income or allow it reinvest inside the product on a tax deferred basis. If you’re looking for a predictable interest rate with principal protection and CD’s just aren’t paying enough for your tastes, and bonds seem too risky, a traditional fixed MYGA is probably a good consideration.”
Brian Thomas Horn, Financial Advisor
Annuity FYI Expert
ARTICLES & GUIDES
Annuity Warning #4: Fixed Annuity Rates
Typically, an annuity company will give you a particular rate up front on a fixed annuity, and then decrease…