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Secure Your Future with Certainty: Fixed Annuities for Financial Peace of Mind

* Fixed annuities are for conservative investors who want safety and guarantees.
* CD owners like fixed annuities because they are similar in many ways.
* Fixed annuity rates refer to the interest rate paid by an insurance company when you buy a fixed annuity.

Get Annuity Basics

The term "annuity" refers to an insurance contract issued and distributed by financial institutions with the intention of paying out invested funds in a fixed income stream in the future. Investors invest in or purchase annuities with monthly premiums or lump-sum payments. The holding institution issues a stream of payments in the future for a specified period of time or for the remainder of the annuitant's life. Annuities are mainly used for retirement purposes and help individuals address the risk of outliving their savings.


  • Annuities are financial products that offer a guaranteed income stream, usually for retirees.

  • The accumulation phase is the first stage of an annuity, whereby investors fund the product with either a lump sum or periodic payments.

  • The annuitant begins receiving payments after the annuitization period for a fixed period or for the rest of their life.

  • Annuities can be structured into different kinds of instruments, which gives investors flexibility.

  • These products can be categorized into immediate and deferred annuities and may be structured as fixed or variable.

How an Annuity Works

Annuities are designed to provide a steady cash flow for people during their retirement years and to alleviate the fears of outliving their assets. Since these assets may not be enough to sustain their standard of living, some investors may turn to an insurance company or other financial institution to purchase an annuity contract.

As such, these financial products are appropriate for investors, who are referred to as annuitants, who want stable, guaranteed retirement income. Because invested cash is illiquid and subject to withdrawal penalties, it is not recommended for younger individuals or for those with liquidity needs to use this financial product.

An annuity goes through several different phases and periods.


These are called:

  • The accumulation phase, the period of time when an annuity is being funded and before payouts begin. Any money invested in the annuity grows on a tax-deferred basis during this stage.

  • The annuitization phase, which kicks in once payments commence.

Annuity products are regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Agents or brokers selling annuities need to hold a state-issued life insurance license, and also a securities license in the case of variable annuities. These agents or brokers typically earn a commission based on the notional value of the annuity contract.


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Type of Annuities

Annuities can be structured according to a wide array of details and factors, such as the duration of time that payments from the annuity can be guaranteed to continue. As mentioned above, annuities can be created so that payments continue so long as either the annuitant or their spouse (if survivorship benefit is elected) is alive. Alternatively, annuities can be structured to pay out funds for a fixed amount of time, such as 20 years, regardless of how long the annuitant lives.

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Immediate and Deferred Annuities

Annuities can begin immediately upon deposit of a lump sum, or they can be structured as deferred benefits. The immediate payment annuity begins paying immediately after the annuitant deposits a lump sum. Deferred income annuities, on the other hand, don't begin paying out after the initial investment. Instead, the client specifies an age at which they would like to begin receiving payments from the insurance company.

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Fixed and Variable Annuities

Annuities can be structured generally as either fixed or variable:

  • Fixed annuities provide regular periodic payments to the annuitant.

  • Variable annuities allow the owner to receive larger future payments if investments of the annuity fund do well and smaller payments if its investments do poorly, which provides for less stable cash flow than a fixed annuity but allows the annuitant to reap the benefits of strong returns from their fund's investments.

While variable annuities carry some market risk and the potential to lose principal, riders and features can be added to annuity contracts—usually for an extra cost. This allows them to function as hybrid fixed-variable annuities. Contract owners can benefit from upside portfolio potential while enjoying the protection of a guaranteed lifetime minimum withdrawal benefit if the portfolio drops in value.

By adding your initials and submitting the form, you provide your electronic consent to receive all forms of communications regarding your Life, Health and Annuity insurance options. Your consent to receive communications in this way is not required as a condition of purchasing any goods or services. is an online resourse company, and we are not affiliated with the United States government, the federal Medicare program and not appointed by any insurance carrier. This communication is intended for informational purposes only and is not an offer of insurance. V. Ethan Vaisman or their associates, subsidiaries, affiliates, or carriers are authorized to offer Medical Indemnity Plans, Critical Illness Plans, Medicare Supplement (Medigap) Insurance, Medicare Advantage (Part C), Medicare Part D, Annuities, Life insurance, and/or Long term care insurance. from various insurance carriers. The availability of these plans may vary by location.

V. Ethan Vaisman or their associates are licensed to sell insurance products in the following states:  CA, FL, IN, NJ, NC, PA.

The contents of this website are subject to change without notice. If you would like to find more information about the Government Medicare program please visit the Official US Government Site for People with Medicare located at 


Annuity rates are based on current interest rates and are subject to change at any time. Some first year yields/rates reflect the fixed rate plus a premium bonus or interest rate enhancement. Upfront bonuses are frequently subject to a vesting schedule. Not all annuities are available in all states. Surrender charges may apply to withdrawals during the surrender period. A 10% IRS penalty may apply to withdrawals prior to age 59 ½. Annuity product guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Annuities are not guaranteed by any bank or credit union and are not insured by the FDIC or any other federal government agency. Information presented on this website is not intended as tax or legal advice. You are encouraged to seek tax or legal advice from a qualified professional.

Should you schedule a call, you will speak with a licensed sales agent who can answer your questions and provide information about
Medical Indemnity Plans, Critical Illness Plans, Medicare Supplement (Medigap) Insurance, Medicare Advantage (Part C),
Medicare Part D, Annuities, Life insurance, and/or Long term care insurance.. Neither nor V. Ethan Vaisman or their associates, subsidiaries, affiliates, or carriers are connected with or endorsed by the U.S. government or the federal Medicare program.

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