How Does A Fixed Annuity Work?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA fixed annuity is all about guarantees. The insurance company guarantees to pay a specific amount of money every month for the rest of your life, in exchange for a fixed amount of money. The company guarantees both the principal and the interest making it an absolutely stress free program for you. It addresses the number one concern of retirees, that of living too long.Answered on September 29, 2014flag this answer
1976 POINTSview profileRonald HinchRegional Marketing Director, Capital Choice Financial Group,A fixed annuity guarantees a certain rate of interest over a fixed period of time that is determined by the insurance company and stated in the contract. These annuities allow the client's money to grow tax deferred and can be purchased with terms of 3 to 10 yrs. Because of their tax deferral status the are the best alternative to bank cds and with a higher rate of interest. It is also a great place to put cash values of a terminated whole life policy when being replaced by a less costly term policy.Answered on April 13, 2016flag this answer
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