The Different Types of Annuities

An annuity, which is a form of insurance where a fixed sum of money paid to someone each year, can add a great amount of stability and security when invested in correctly. Annuities are a fantastic way to save for retirement or other future plans, but it can be easy for someone to not meet the requirements of the annuity they purchase. At Fortis Lux Financial, we offer three different types of annuities and we feel it’s important that you understand all three types before purchasing one for yourself.

  1. Fixed Deferred Annuities

Fixed deferred annuities offer guaranteed fixed interest rates, which means you can mix and match various annuities to create an income stream that doesn’t change due to interest rates and market fluctuations. This type of annuity is best suited for more conservative individuals.

  1. Income Annuities

Income annuities have limited or no liquidity, providing guaranteed income either for life or for a certain period of time that you choose. These can also be active immediately or at a set date in the future.

  1. Variable Annuities

When you choose a variable annuity, the value of the annuity varies depending on the performance of the account that your money goes into. Variable annuities are viewed as investments and are great for individuals who want upside appreciation and can handle the fluctuating expenses.