A fixed annuity is an investment contract sold by an insurance company that guarantees fixed payments, either for life or for a specified period, to an annuitant. It provides a stable and predictable income stream, making it a popular choice for retirees seeking financial security.
A hybrid annuity is a contract offered by an insurance company that combines the benefits of both fixed and variable annuities, offering a balance between guaranteed returns and potential for higher earnings.
A variable annuity is a type of life insurance annuity whose value fluctuates with that of an underlying securities portfolio or other index of performance. It contrasts with a conventional or fixed annuity, whose rate of return is constant.
