Fixed Deferred Annuities: Fixed deferred annuities offer guaranteed tax-deferred interest rates for periods ranging from 1 to 10 years. At the end of the guarantee period the annuity can be renewed, terminated or rolled over to another insurance company offering more competitive interest rates. These are issued by life insurance companies.
Immediate Annuities:
Immediate annuities provide an immediate guaranteed income for a person’s
lifetime or for a specified time period. Unlike other types of annuities,
the principal amount paid is exchanged for guaranteed income. These are
issued by life insurance companies.
Equity
Indexed Annuities (Fixed Indexed Annuities):
Fixed indexed annuities are tax-deferred annuities that offer minimum
guaranteed interest rates and the ability to obtain a higher rate linked
to one or more stock market indexes (e.g. S & P 500). The contract
periods range from 5 to 12 years. Equity index annuities provide upside
potential and downside protection through minimum interest rates. These
are issued by life insurance companies.
