At a glance
What it isAn insurance contract that can turn savings into income later.MoreLess
Fixed and fixed indexed annuities are insurance contracts, not investment accounts.
What you getIncome later, depending on the contract. Guarantees depend on the insurer.MoreLess
Some contracts offer payments for life. Fixed annuities credit interest under the contract’s terms. Fixed indexed ones link interest to a market index, with limits set in the contract.
Good ifYou want part of your savings to become income later.MoreLess
It suits money you won’t need for a long time.
Keep in mindYour money is tied up. Taking out too much early can mean surrender charges.MoreLess
Guarantees are backed by the insurance company that issues the contract. Rates, caps and fees differ. Talk to a licensed advisor before you decide.