How Safe Are Fixed Rate Annuities?
Fixed rate annuities are contracts issued by insurance companies. There are two types of fixed annuities: immediate and deferred. Immediate annuities begin paying income immediately as the name implies, and deferred annuities allow the account balance to grow for future use. Fixed annuities are annuity contracts that are guaranteed by the insurance company and are not invested directly in stocks or bonds or real estate. Because the contracts are guaranteed contracts and not variable contracts, the values are guaranteed by the insurance company.
