Fixed Annuity

What Do Annuities Cost?

What Do Fixed Annuities Cost? A fixed annuity typically does not impose direct expense charges on the contract owner, other than surrender charges (charges for cancellation of the contract during its early years) for deferred fixed annuities. The spread, or difference between what the issuing company expects to earn and what it commits to pay …

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How Are Annuities Regulated?

In the United States, commercial annuities are issued by insurance companies. When new fixed and variable products are developed, they must be filed with the state’s insurance department. Before these products can be sold, each state where they will be available must provide written approval. Because variable annuities are considered securities as well as insurance …

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What Are the Differences Between Deferred and Immediate Annuities?

Deferred Annuities: A Way to Save Money for Retirement Many people buy annuities because they want their money to grow tax deferred while they are saving for retirement, and they want a guaranteed income stream once they retire. This type of annuity is called a deferred annuity. A deferred annuity contract has two phases—an accumulation …

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What Are Guaranteed Minimum Living Benefits?

Prior to about 1997, principal protection under variable annuity contracts was offered only in the case of death. In 1997 the first Guaranteed Minimum Income benefit was issued, which offered contract holders the opportunity to generate annuity income from the greater of the account value or a guaranteed minimum amount based on the premium, after …

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