How long do fixed annuities last?

When you sign up, you pick how many years you want the fixed annuity to last, typically between three to 10 years. The insurance company then guarantees to pay you the annuity interest rate over this period. There are two other types of annuities to choose from: variable annuities and fixed index annuities.

How do fixed annuities work?

Fixed annuities have both a current interest rate (that usually resets periodically) and a minimum guaranteed rate (that remains in-force for the life on the contract). The rates of the annuity will be spelled out in the annuity contract. What are the pros and cons of fixed annuities?

What are the different types of annuities?

There are two other types of annuities to choose from: variable annuities and fixed index annuities. If you buy an annuity, it’s usually a multi-year investment for a considerable amount of your money. If you cancel before the end of the annuity term, you could owe a substantial penalty known as a surrender charge.