A fixed annuity is an insurance contract that offers the buyer a fixed rate of return on their contributions for a specific period of time. Fixed annuities are good investments for those with a low risk tolerance looking for premium protection and the potential for lifetime income. Fixed annuities grow tax-deferred, meaning your savings grow faster than they would if your gains were taxed every year. If the annuity owner dies, the account value will be paid directly to the beneficiary, allowing heirs to avoid the expenses and hassles of probate.
