How long is the surrender period?
Use this as a checkpoint before comparing carriers or signing an application.
Insurance terms
Fixed annuity
An insurance contract built around stated guarantees and carrier strength.
Definition
Fixed annuity
A fixed annuity is an insurance contract that can offer stated guarantees for a period of time or a structured income option, depending on the contract type.
- Why it mattersFixed annuities are often compared too quickly by rate alone. Surrender periods, renewal terms, withdrawal rules, taxes, income options, and the carrier behind the guarantee all matter.
- What it is notThis is not a quote, approval, recommendation, or policy promise. The exact meaning depends on the contract and carrier.
- Where to confirm itAsk to see the policy language, rider language, illustration, or contract page that controls this term.
Questions to ask.
A good broker conversation should turn a definition into a practical policy decision.
What withdrawal access is allowed?
Use this as a checkpoint before comparing carriers or signing an application.
What happens after the initial term?
Use this as a checkpoint before comparing carriers or signing an application.
What income options are available?
Use this as a checkpoint before comparing carriers or signing an application.
Related reading.
Keep the explanation connected to the product you are comparing.