Fixed Annuities

Fixed Annuities

A guaranteed annuity is a type of financial product that provides a guaranteed stream of income for a specific period of time or for the remainder of the annuitant's life. Annuities are typically purchased with a lump sum of money, and the income payments are made in exchange for the upfront investment.


There are several types of guaranteed annuities, including fixed annuities, indexed annuities, and variable annuities. Each type of annuity has its own set of features and benefits, and it is important to carefully consider your financial goals and needs when selecting an annuity.


Some of the key features and benefits of guaranteed annuities include:

  • Guaranteed income: The primary benefit of a guaranteed annuity is the guaranteed stream of income that it provides. This can be a valuable source of financial security for retirees or those who are looking to supplement their income.

  • Potential for tax-deferred growth: Depending on the type of annuity, the investment may be able to grow tax-deferred, which can help to maximize the return on the investment.

  • Potential for death benefit: Some annuities may include a death benefit that pays out to the beneficiary upon the death of the annuitant.

  • Potential for income riders: Some annuities may offer additional income riders that can provide additional income in the event of certain events, such as a long-term care need.


Here's how fixed annuities work:


  • The investor purchases the annuity with a lump sum of money, known as the premium.

  • The insurer guarantees a fixed rate of return on the premium, which is used to determine the income payments that will be received by the investor.

  • The income payments may be received immediately (in the case of an immediate annuity) or at a later date (in the case of a deferred annuity).

  • The income payments may be received for a specific period of time (such as 10 years) or for the remainder of the investor's life (in the case of a life annuity).


Fixed annuities can be a good choice for investors who are looking for a guaranteed source of income and who are willing to trade the potential for higher returns in exchange for the security of a fixed rate of return. It is important to carefully consider the terms of the annuity, including the guaranteed rate of return, the length of the income payment period, and any fees or charges associated with the product.




Deepak Sharma

Deepak Sharma

Insurance Advisor / WealthGuard


  • My goal is simple, protect what is important to you. I focus my energy on discovering your exposure to risk and building a comprehensive plan to protect you against those risk.