What are the Different Types of Fixed Income Annuities?
There are numerous types of fixed income annuities, and while it would be problematic to try and list each and every variation, we have compiled a list of the most common. Each of these different types of fixed annuities may have numerous strategies associated with them and will vary from company to company. These types of annuities are also not mutually exclusive. Some contracts will combine several of the following fixed annuities. Annuity Certain – this is annuity contract in which the recurring payments are made for a definite period of time and are not dependent upon the lifespan of an individual. Cash Refund Annuities – this is a type of refund that pays the annuitant’s defined beneficiary the difference, if any, of the purchase price of the annuity and the sum of the payouts to the deceased annuitant. Equity-Indexed Annuities – a type of fixed annuity that has a guaranteed minimum interest rate and also offers a bonus dependent upon an equity index (market conditions). Installme
