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.

Annuities Versus Bonds

This discussion topic was originally posted in the form of a comment.

The general topic is how annuities compare to bonds.  It is a natural question since both annuities and bonds provide owners with fixed payments.

We moved the comment here so that it can surface to a larger audience and hopefully generate further discussion and comments.

As noted below, the conceptual basis for this content is based on a great paper written a few years ago by Jason Scott--the Director of Retiree Research at Financial Engines.

The original post is as follows:

Western National

Short Company Name: 
Western National
Long Company Name: 
Western National

Western National Life Insurance Company was founded in 1944 and is located in Houston, Texas.

The company was named as American General Annuity Insurance Company between 1998 and 2009. It was one of the first insurance companies to offer fixed annuity products specifically for sale through banks and has been the leader in that market for several years.

Western National Life Insurance Company’s product range includes traditional fixed and indexed tax-deferred annuities and single premium income annuities. Below is a brief overview of its products:

Company Type: 
Insurance Company
Street Address: 
2929 Allen Pkwy., Ste. 3800
ZIP Code: 
Phone Number: 
Fax Number: 
Year Founded: