Direct answer
Fixed annuities provide guaranteed income because the insurance company assumes the investment risk and contractually agrees to pay a set interest rate or periodic payout over a defined timeframe. It depends on whether you choose a period-certain payout or a lifetime income rider, which dictates how long those payments will last.
Industry-standard actuarial tables and insurance contract guidelines governing fixed annuity payout structures. For additional information about the standards and consumer protections governing annuity contracts, see the National Association of Insurance Commissioners‘ resource center.
What this means for you
Fixed annuities provide guaranteed income because the insurance company assumes the investment risk and contractually agrees to pay a set interest rate or periodic payout over a defined timeframe. It depends on whether you choose a period-certain payout or a lifetime income rider, which dictates how long those payments will last.
FARMER STOCKMAN
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This page is informational and not a coverage guarantee or quote.
