Fixed Annuities
A fixed annuity credits a stated interest rate for a stated period. It is the plainest contract in this family and the easiest to compare, which is exactly why it gets sold least aggressively.
Read this first
This is a fixed annuity. It is not a variable annuity, not a registered index-linked or “buffer” annuity, and not a security. We do not offer securities.
An annuity is a long-term contract with an insurance company. Withdrawals above the contract's free amount during the surrender charge period are reduced by a surrender charge and, where the contract has one, a market value adjustment. Withdrawals of taxable amounts before age 59½ may also carry a 10% federal additional tax.
Guarantees are backed by the claims-paying ability of the issuing insurance company. They are not insured by the FDIC or any federal agency.
A multi-year guaranteed annuity guarantees its rate for the full guarantee period. A declared-rate contract guarantees only the contractual minimum rate; the rate above that is declared by the insurer and can change.
The problem it solves
Money earmarked for later needs somewhere to sit that will not fall in value and will not tempt you to spend it. Savings accounts reset whenever the bank feels like it. Bonds move with rates. For a fixed sum over a fixed horizon, many people want a number they can write down now and count on later.
A fixed annuity does that. The insurer agrees to credit a stated rate, you agree to leave the money for a stated period, and both sides know the terms on day one. The interest accumulates tax-deferred until you take it out.
Three things happen, in this order
You choose a term and hand over a premium
Commonly two to ten years. The term and the surrender charge schedule normally match, so choose the term you can actually leave alone.
The contract credits interest
A multi-year guaranteed annuity guarantees the rate for the whole term. A declared-rate contract guarantees only the contractual minimum and resets the rate above it periodically. Know which you are buying.
At the end you take it, renew it, or move it
You can withdraw, renew into a new term, annuitize it for income, or transfer it to another contract. A transfer between annuities can often be done without triggering tax; ask before you move anything.
Who this suits, and who it does not
The second list matters more than the first. An agent who only writes the first one is selling, not advising.
Worth considering if…
- You have money you will not need for a defined number of years and you want the rate in writing rather than at the bank's discretion.
- You are already in a higher bracket now than you expect to be later, and deferring the tax on the interest is worth something to you.
- You want the simplest possible contract, with no rider, no index formula and nothing to monitor.
Probably not for you if…
- You might need the money. Withdrawals above the free amount during the surrender period are cut by a surrender charge and, on some contracts, a market value adjustment. Liquidity is what you are trading away.
- You are under 59½ and would be taking it out. Taxable amounts withdrawn before then can carry a 10% federal additional tax on top of ordinary income tax.
- You want growth. This is a savings instrument with a guaranteed rate, not a growth vehicle, and over long horizons it is not trying to beat anything.
Who we are appointed with
We are independent and appointed with the annuity companies below. Which of them we would approach for you depends on the product, your age, your state and what the contract has to do — rates, caps and payout amounts move constantly and differ sharply between companies, which is the practical reason for working with someone who can approach more than one. They are quoted for you directly rather than published here, where they would be stale within days.
- Allianz Life
- American Equity
- American National
- Americo
- Ameritas
- ASPIDA
- Athene
- Atlantic Coast Life
- AuguStar Financial
- Brighthouse Financial
- CL Life and Annuity
- Clear Spring Life and Annuity
- Columbus Life
- Corebridge Financial
- Delaware Life
- ELCO Mutual Life & Annuity
- EquiTrust Life
- F&G Annuities
- Fidelity Security Life
- Global Atlantic (Forethought Life)
- Guaranty Income Life (GILICO)
- Ibexis
- Knighthead Life
- Lafayette Life
- Liberty Bankers Life
- Lincoln Financial Group
- MassMutual Ascend
- Midland National
- Mutual of Omaha (United of Omaha)
- Nassau (Phoenix Life)
- National Integrity Life
- National Life Group (Life Insurance Company of the Southwest)
- National Western Life
- Nationwide
- New York Life
- North American Company for Life and Health
- Oceanview
- Oxford Life
- Pacific Life
- Penn Mutual
- Principal
- Protective Life
- Prudential
- Puritan Life
- Reliance Standard
- Revol One Financial
- Royal Neighbors of America
- S.USA Life / SBLI USA
- Sagicor
- Securian Financial (Minnesota Life)
- Sentinel Security Life
- SILAC
- Symetra
- Talcott Financial Group
- The Standard
- Upstream Life
Being appointed with a company does not mean that company offers every product on this page, and we do not represent every insurer. Which company suits you depends on the product, your age, your state and your health history. We publish no benefit, rate or feature for any company here until we can cite it to that company's own current material.
Servicing only — not available for new business
We can help with an existing contract from these companies — reviewing it, taking income from it, or understanding what you already own. We are not appointed to write new business with them, so if a new contract is what you need, it would be placed with one of the companies above.
- Genworth
- Security Benefit
- Transamerica
- Venerable (formerly Voya annuities)
Questions people actually ask
Is a fixed annuity the same as a CD?
They rhyme but they are different in three ways that matter. A CD is a bank deposit insured by the FDIC; an annuity is an insurance contract backed by the issuing company's claims-paying ability, not by any federal agency. CD interest is taxed each year, while annuity interest is tax-deferred until you take it out. And early access works differently: CDs charge forfeited interest, annuities apply a surrender charge and possibly a market value adjustment.
What happens if the insurance company fails?
Annuity guarantees depend on the insurer's claims-paying ability, so the company's financial strength is part of what you are buying. Every state also operates a guaranty association that provides a limited backstop, with dollar caps that vary by state and that are generally not permitted to be used to sell the product. Ask about the company's ratings, and ask your state insurance department about the guaranty association limits where you live.
Can I get to my money if I need it?
Usually a limited amount each year without charge — often the interest, or a percentage of the value — and many contracts waive the surrender charge for events like confinement to a nursing home or a terminal diagnosis. Beyond those, a withdrawal during the surrender period is reduced. Read the surrender schedule and the waiver conditions before you sign, not after.
How is it taxed?
Interest accumulates without being taxed each year. When you withdraw from a contract bought with after-tax money, earnings come out first and are taxed as ordinary income, not at capital gains rates. Before 59½ a 10% federal additional tax can apply to the taxable part. Inside an IRA the whole distribution follows the IRA's rules. This is general information, not tax advice — ask your tax professional about your own situation.
Ask for a quote on Fixed Annuities
Tell us how to reach you and which state you are in. A licensed agent calls back, usually the same business day, and will tell you plainly if a fully underwritten policy would serve you better.
The other three
Same family, different jobs. Match the product to how long the need lasts.
Fixed Indexed Annuities
A fixed annuity whose interest credit is calculated from the movement of a market index, limited by a cap, participation rate or spread, and floored so that a falling index credits zero rather than a loss.
Worth a look if you want more than a fixed rate but will not risk principal to market movement.
Immediate Annuities
You hand over a single premium and income starts almost straight away, for life or for a chosen period. The simplest annuity there is, and the one with the least to go wrong.
Worth a look if you want a guaranteed income floor under your essential expenses for life.
Deferred Income Annuities and QLACs
You buy the income now and it starts on a date you choose years later. Bought inside a qualified account and meeting the Treasury rules, the same contract is a QLAC.
Worth a look if you want to solve the last decade of retirement now, or are considering a QLAC.
Lifetime Income Riders (GLWB)
An optional rider that guarantees a withdrawal amount for life even if the account runs to zero, while you keep ownership of the account. It runs on a second number that is not your money.
Worth a look if you want lifetime income but will not give up access to the principal.
Enhanced Income Riders (Income Doublers)
An optional rider that increases your guaranteed withdrawal, often doubling it, for a limited period if you cannot perform activities of daily living or are confined to a qualifying facility. It is often mistaken for long-term care insurance. It is not.
Worth understanding before anyone sells it to you as care coverage, because it is not.