fixed annuity investment & finance definition
An annuity investment that guarantees a fixed payment for a specific period or for the life of the insured.
Definition
Fixed annuity
The guaranteed income of an annuity, the amount and payment schedule of which has been specified in advance.
Ask a Question ...
In a fixed annuity, the payments will always be exactly the same. Usually a fixed annuity continues for life, or can be rolled over to a partner or specific descendants, depending on the firm issuing the annuity.
Fixed Annuity
An insurance contract in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal.
Fixed Annuity
Guaranteed payments of a specified fixed dollar amount annually for the period covered under the contract.
Flat
A security position that is neither long nor short in a portfolio.
Fixed Annuity An annuity contract with a guaranteed interest rate provided by the insurance company for the life of the contract. Fixed annuities can be either immediate or deferred.
Fixed annuity Annuity that guarantees fixed payments to the annuitant, either for life or for a set period of time.
Fixed-income security A security, such as a bond or money market instrument, that pays a specific interest rate.
Fixed Annuity: An investment vehicle, often used for retirement accounts, that guarantees principal and a specified interest rate. Fixed annuity earnings grow tax-deferred until withdrawal.
Fixed annuity: In addition to guaranteeing your principal, a fixed-rate annuity earns a guaranteed rate of interest for a specified period of time.
Fixed Annuity - Insurance company guarantees dollar amount of payments to the annuitant for the period covered under the contract.
Flat - A bond trading without accrued interest is said to be trading "flat." ...
Fixed annuity: An annuity policy with fixed monthly payments to the owner. See annuity.
Fixed assets: Corporate assets that are used in a trade or business having a useful life of more than one year.
The fixed annuity will have a guarantee attached to it. Basically, when you buy the annuity, you are signing a contract with the insurance company.
combination annuity An annuity which combines features of a fixed annuity and a variable annuity. Also known as hybrid annuity. combination bond A bond which is backed both by revenue from the project for which the borrowing...
In a fixed annuity, the insurance company guarantees that you will earn a minimum rate of interest during the time that your account is growing.
When you buy a deferred fixed annuity contract, the company issuing the contract promises a fixed rate of return during the accumulation period regardless of whether market interest rates move up or down.
The payments to you can be for a fixed amount (in the case of a fixed annuity) or for an amount that varies according to an underlying investment (in the case of a variable annuity).
Additional Comments: ...
There are two basic types of annuities: fixed and variable.
With fixed annuity, the premiums you pay will be invested in fixed-rate instruments such as bonds or mortgages.
- Teaser rates: Confirm the rate of return the insurance company is promising, and for how long. For instance, a fixed annuity's guaranteed rate may decline after an introductory period.
Pension reversion
Termination of an overfunded defined benefit pension plan and replacement of it with a life insurance company-sponsored fixed annuity plan.
Pension sponsors
Organizations that have established a pension plan.
Hybrid annuity
A type of insurance company investment that combines the benefits of both a fixed annuity and a variable annuity.
TeenAnalyst Advice: Annuities are great for people who would like to receive a steady income stream. For example, if you had $1 million and invested that in a fixed annuity at 3%, you would receive $30,000/year in interest.
 See also: Annuity, Investment, Period, Contract, Market
  
|
RSS
