What are the differences between variable, fixed and immediate annuities?
There are many, many different types of annuities.
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Fixed Annuity
A fixed annuity provides a guaranteed rate of interest during the accumulation period and a guaranteed (“fixed”) amount of income when the contract is annuitized. With a fixed annuity, the insurance company is responsible for investing the premium payments and therefore assumes investment risk. The insurance company is obligated to provide guaranteed annuity payments regardless of whether their investments have generated an adequate rate of return. With a fixed annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a fixed or guaranteed rate, and; 3) payments are at a fixed rate and can begin immediately or at some future date.
Are the companies that provide annuity products safe in the current upheaval of the banking and financial services industry?
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High expenses or fees are one criticism I have heard regarding annuities. Can you explain the fee structure around annuities?
Annuities are products that combine insurance and, in the case of variable annuities,
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What type of risk is associated with annuities?
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What types of fees should an annuity investor expect to pay?
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