Frequently Asked Questions

A Fixed Annuity is an insurance contract between you and an insurance company. You make either a lump-sum payment or a series of payments, and in return, the insurance company guarantees a fixed rate of interest on your money for a specified period. Unlike market-based investments, your principal is protected and your interest rate is guaranteed, providing predictable growth for your retirement savings.

While both Fixed Annuities and CDs offer guaranteed interest rates, there are key differences. Fixed Annuities typically offer higher interest rates than CDs, provide tax-deferred growth (you don't pay taxes on earnings until withdrawal), and can be structured to provide lifetime income. CDs are FDIC insured up to $250,000, while Fixed Annuities are backed by the financial strength of the issuing insurance company and may be protected by state guaranty associations.

Minimum investment amounts vary by insurance carrier and product type. Generally, Fixed Annuities can be purchased with as little as $5,000 to $10,000, though some products may require higher minimums of $25,000 or more. A licensed insurance professional can help you find products that match your available funds and retirement goals.

This depends on the type of Fixed Annuity you purchase. Single Premium Immediate Annuities (SPIAs) require one lump-sum payment. However, Flexible Premium Deferred Annuities allow you to make additional contributions over time, subject to the terms of your contract. Your insurance professional can explain which options are available based on your needs.