What does Hybrid Annuity mean?

Hybrid Annuity is a contract which is a good solution for investors who wish to make their investments on a combined basis, meaning they may choose to invest in both fixed and variable annuities on the same contract. Investing towards a fixed annuity will bring a certain fixed but usually low income, because this is a no risk investment, and this is usually a solution which should be considered for the long run. On he other hand, a variable annuity is a higher risk investment, but which may bring much higher incomes, but these are always subject to the market’s fluctuation.

Hybrid Annuity explained

Choosing Hybrid Annuity is a good solution only for those individuals who do not want profit on the short term, because any business within the stock market usually necessitates time until it brings higher profit. One always has to read the terms and conditions of such a contract carefully before agreeing to it.