Variable Rate & Fixed Rate Annuities

Here’s how annuities work

An annuity is a contract between an individual and an insurance company, and can be used to help increase savings, protect your savings, or generate a stream of income. Annuities can be either fixed* or variable.

With fixed income annuities* your balance is safer than variable annuities because the insurance company assumes the investment risk. They are guaranteed1 to earn a fixed rate of interest, and can provide a stream of income for the rest of your life or for a set period of time.

Variable annuities2 do not guarantee a rate of return and may carry a higher degree of risk because they can invest in stocks, bonds, or money market securities. The investment performance is based on the portfolios chosen by the owner. The investment return of variable annuities can fluctuate.

Guarantees are based on the claims-paying ability of the issuer.

Annuity Features and Benefits



Lifetime Income

Income from an annuity may be paid out for your lifetime and then for the lifetime of your spouse.

Tax-Deferred Growth3

Tax-deferred compounding may result in faster growth of principal, interest, and tax savings.

Penalty-Free Withdrawals

Some annuities allow for tax-free withdrawals to cover healthcare costs or other hardships or emergencies.

Probate Avoidance

The annuity contract names a beneficiary and then usually allows the annuity to go directly to the beneficiary, avoiding probate.

Death Benefits

Some variable annuities provide a guaranteed death benefit and some fixed annuities* guarantee payment of the current contract value to the beneficiary at the time of death.