Fixed Annuity

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS 'Fixed Annuity'

A fairly good financial instrument for those looking to receive a fixed investment income.

RELATED TERMS
  1. Annuity Certain

    A financial instrument that provides a stream of payments, for ...
  2. Annuity Consideration

    The money that an individual pays to an insurance company in ...
  3. Annuity Ladder

    An investment strategy for retirees or near-retirees that entails ...
  4. Annuity

    A financial product sold by financial institutions that is designed ...
  5. Variable Annuity

    An insurance contract in which, at the end of the accumulation ...
  6. Life Annuity

    An insurance product that features a predetermined periodic payout ...
Related Articles
  1. Watch Your Back In The Annuity Game
    Home & Auto

    Watch Your Back In The Annuity Game

  2. 5 Ways To Stretch Your Retirement Budget
    Budgeting

    5 Ways To Stretch Your Retirement Budget

  3. Calculating The Present And Future Value ...
    Investing Basics

    Calculating The Present And Future Value ...

  4. Passing The Buck: The Hidden Costs Of ...
    Bonds & Fixed Income

    Passing The Buck: The Hidden Costs Of ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center