What does Fixed Annuity mean?

A fixed annuity is when the policy holder benefits of a defined monthly income from the insurance policy. Most of times it has a lifelong aspect, as the insurance company will pay these installments to the policy holder until he/she deceases.

Fixed Annuity explained

A Fixed Annuity is the perfect solution for the long term, as it constitutes a reliable source of income to the policy holder. Usually, an individual can choose for himself whether a fixed or a variable annuity would suit him best. It is very important to note that a variable source of income although is not such a reliable source as a fixed one would be, but sometimes it can prove more rewarding, especially because it is always subject to the market oscillations and certainly inflations.