Is A Fixed Annuity A Security?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    No, a fixed annuity is not a security and is not governed by the SEC. A fixed annuity guarantees that you will receive a fixed payment for a fixed period of time...either a number of years or for the rest or your life. As such, no part of the annuity is invested in the stock market or other securities where there is the risk of loss.
    Answered on September 1, 2013
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  2. 11783 POINTS
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    Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    Is a fixed annuity a security? Technically no. An fixed annuity is an insurance product, governed by your state's insurance laws. With a fixed annuity, the insurance company offers a set rate of return for one year or more and bears the investment risk for the plan. It is up to the insurance company to invest those funds to meet the obligation they've stated for that year. Clearly their goal is to do better than the stated rate of return as that is part of their profitability, but even if they don't make the return they promise, they still have to pay it.
    Answered on October 8, 2015
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