6 Benefits of Fixed Annuities You Should Know

A fixed annuity is one of the best and most secure methods of investment. That’s why it found its place as a great retirement plan for seniors. You can easily find the best fixed annuity to get the benefits of fixed interest rates on whatever installment you pay over the agreed period. To give you more knowledge about fixed annuities, you should know these six benefits of fixed annuities. Let’s take a look at them.

  1. Fixed annuities are highly secure.

Fixed annuities are one of the most secure investments you can make to get promising returns. Thanks to its fixed rate of interest, market conditions or the investment portfolio’s performance don’t affect the fixed amount you receive from the fixed annuities. You can already know the amount of money you will receive over the years. On top of that, you won’t have to worry about the ups and downs of the stock market. Your investment in the fixed annuities and the monthly amount you receive through it always stay safe.

  1. They have the lowest risk.

Fixed annuities are known for their lowest investment risk. You have the surety of fixed monthly interest, as the market conditions do not affect it. The lack of risk makes it an excellent investment for retired seniors as they need regular income to support their livelihood. It’s like having an assured monthly salary without working a full-time job.

  1. It provides top-notch protection.

With fixed annuities, you don’t have to worry about losing your initial investment or any contributions or premiums that you make to your fixed annuity. All of your money stays secure as per the contract, and you have the right to decide whether you want to receive it on a regular period or as a lump sum amount.

  1. The amount of monthly interest can be increased with more contributions.

If you want to increase the fixed monthly amount you receive with the fixed annuities, you can increase the money you contribute to the initial investment and the subsequent premiums. When you increase the premiums, the monthly interest you receive increases too. As the owner of the fixed annuity, you reserve the power to improve the performance of your fixed annuities rather than the stock market.

  1. Assured minimum interest rate

The secret of finding the best fixed annuity lies in the minimum rate of interest that you receive with it. The interest rate you receive throughout the tenure would never reduce than the minimum interest rate agreed upon in the contract of your fixed annuity. You get a guaranteed minimum interest rate which you can improve through increased premiums.

This assurance makes it a great retirement option for the elderly who cannot afford to lose any payments that they receive monthly. Fixed interest rates help them have a fixed, regular income every month or whatever period that is agreed in the contract. 

  1. You get a regular source of income for the rest of your life.

Fixed annuities are a great way to have a guaranteed monthly income for the rest of your life. Regardless of the company’s investment portfolio or the stock market situation, your monthly payments stay secure throughout the tenure. Even your beneficiaries will receive the benefits after you are gone. You can save them all the trouble by thoughtfully mentioning their names in the contract. Imagine you won’t have to worry about arranging money for your livelihood till your last day, which can be a reality with the best-fixed annuity.

These were some of the valuable benefits of fixed annuities. Don’t forget to take professional advice to find the best fixed annuity that satisfies your requirements and ensures to give you good returns.

Ellen Hollington

Ellen Hollington is a freelance writer who offers to ghostwrite, copywriting, and blogging services. She works closely with B2C and B2B businesses providing digital marketing content that gains social media attention and increases their search engine visibility.