FIXED ANNUITIES
FIXED ANNUITIES
In a fixed annuity, the insurance carrier:
◘ Declares a current rate of interest for a specified time period. Once the time expires the company will set a new rate which may be higher or lower than the original rate.
◘ Guarantees a minimum interest rate of return which is specified in the contract, and at no time may the current or renewal interest rate fall below it.
◘ Guarantees the principal.