A fixed annuity pays a guaranteed1 rate of return for a specified length of time. And, throughout the life of the annuity, the issuing insurance company guarantees that the interest rate will not fall below a certain level.
Depending on your investment needs, a fixed annuity can help supplement your retirement savings or complement your current investment portfolio.
This type of annuity is best suited for individuals who seek security and stability. Since the rate of return is fixed, you'll know exactly how much you're earning for a specified period and there's no need to worry about market volatility.
Benefits of a fixed annuity
Security you can rely on
When you do business with Chase, we do the research for you. We've evaluated many different life insurance companies and selected our products from those receiving the highest ratings from major rating agencies.
Selection that suits your needs
With a fixed annuity, you can decide whether you want to make periodic or a single lump sum purchase payment. This flexibility allows you to tailor your purchase payments according to your desire and ability to invest.
Protect your heirs
If you name a beneficiary to your annuity, your annuity assets will go directly to that beneficiary upon your death, bypassing probate processes that can be lengthy and expensive.
Lock-in competitive interest rates
Each purchase payment you make to your annuity is guaranteed by the issuing insurance company to earn a competitive fixed rate of return for a specified period. That length of time varies with the specific annuity you select. And, no matter what happens with market interest rates, your annuity will not earn less than the minimum rate guaranteed by the insurance company.
Eliminate account fees
Fixed annuities let you save without paying start-up or annual maintenance fees – savings that can be significant over time.
With an annuity, you benefit from tax-deferred growth of your money. This means that taxes on any earnings are postponed until you withdraw the money. This deferment offers you the potential to accumulate more money over a shorter period of time, which can ultimately provide you with more substantial retirement savings.
Access to your money
As with other long-term investments, fixed annuities offer the greatest benefits if your money remains in the contract and is allowed to grow on a tax-deferred basis. But, if you need access to your funds, fixed annuities offer a variety of distribution options that enable you to access your money without penalty2.
For more information, contact a Financial Advisor.