fixed annuity

Definition

An investment vehicle offered by an insurance company, that guarantees a stream of fixed payments over the life of the annuity. The insurer, not the insured, takes the investment risk. also called fixed dollar annuity.

Use fixed annuity in a sentence

When he ran the numbers, he realized that the fixed annuity the business had in hand was a great comfort in a very volatile economic environment.

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The insurance company was very nervous to give Bill a fixed annuity based on his past, but they really wanted Bill to remain a loyal customer to the agency.

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Many employees at my company purchased a fixed annuity to provide secure investing for their future and retirement without incurring the risk of the investment.

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variable annuity security