Fixed Annuities are insurance-backed investments that pay fixed dollar amounts for the term of the contract. Generally this term continues until the death of the annuitant. Fixed Annuities are similar to fixed-term CDs – that is, they pay guaranteed rates of interest. Like CDs, they are very safe investments, since the insurance company guarantees both the earnings and the principal. In today’s market, Fixed Annuities pay a higher rate of return than bank CDs.
Since Fixed Annuities pay a guaranteed interest rate, they are very attractive to investors wary of stock market volatility. While it’s true that less risk can mean lower returns, it’s also true that Fixed Annuities guarantee the safety of your principal investment. That’s something the stock market can never do.
Since most Fixed Annuities last for the term of the annuitant’s life, what happens to the funds after death? In most cases, the remaining dollar amount of the account will be paid out to heirs upon the death of the annuitant.
So if you’re looking for peace of mind during your retirement years, a Fixed Annuity may be your key. Call Alliance Insurance Group today and let our expert Independent Agents help you explore whether Fixed Annuities should be part of your long-term plan, or fill out our online form to request a quote