What does Fixed Annuity mean? Read on to discover the definition & meaning of the term Fixed Annuity - to help you better understand the language used in insurance policies.
A fixed annuity is an insurance contract where the annuitant, or annuity holder, makes a lump sum or series of contributions to the contract in exchange for a guaranteed interest rate for a certain period of time. At a later agreed upon date, the insurer makes regular payments to the annuitant based on the chosen payout option.
We hope the you have a better understanding of the meaning of Fixed Annuity.