Immediate Fixed Annuity Explained
Many people are interested in the fixed annuity product referred to as an immediate fixed annuity. This product can be one of the simplest and most straightforward of fixed annuities contracts.
An immediate fixed annuity is simply an annuity in which a lump-sum payment is made to the insurance company, at which point "immediate" and "fixed" payments commence. The fixed portion of this annuity type is that once payments begin, they pay out a fixed amount each period (month, year, etc. as defined by the contract).]
The payments on an immediate fixed annuity will begin one payment interval after the contract is established. If the contract provides for monthly payments, payments will begin one month after contract commencement. An annual payment contract will make the first payment one year after the date of purchase.
The fixed portion of the contract refers the contract making payments of a fixed dollar amount over a specified period of time or throughout the lifetime of one or more persons. Once these payments begin, they cannot be changed or altered. You have signed up for a fixed payment schedule.
Explore additional areas of this website for more information on immediate fixed annuities and how to integrate them with annuity riders, determine contract details, and other important issues you need to be concerned about. You may also be interesting in seeing annuities explained in general.
What is an Immediate Fixed Annuity
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