Is An Immediate Annuity A Fixed Annuity?

  1. 12689 POINTS
    Ted Ratliff
    Owner, SFS Associates,
    An immediate annuity is an annuity that begins immediate payouts of income. It can be fixed, indexed, or variable. A Fixed Annuity has a set interest rate that it will pay. An Indexed Annuity has a guaranteed rate which can increase based on the performance of stock index's. A variable annuity's interest rate is more closely tied to the stock market and is a little more volatile.
    Answered on March 17, 2015
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  2. 5877 POINTS
    Stan Cox II
    Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
    An Immediate Annuity is one that begins to pay a regular amount to the annuitant in the first pay period after depositing the funds. The pay periods may be monthly, quarterly, semi annually, or annually. A deferred annuity is one that has an accumulation period for a determined amount of time before the distribution begins making it a "deferred" annuity. Either one may be fixed or variable.
    Answered on August 5, 2015
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