What Is the Difference Between a Fixed and Variable Annuity?

A fixed annuity is an annuity determined during the annuity period, that is, an annuity from the first payment to the last payment, or it is a guaranteed annuity without any conditions attached. In contrast, contingent annuities, such as bond interest, are risky. Life insurance premiums or pensions are paid on the condition that the insured person survives. Usually, an annuity is called an annuity. The calculation is limited to the amount of insurance each time. ^[1]

Fixed annuity

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A fixed annuity is an annuity determined during the annuity period, that is, an annuity from the first payment to the last payment, or it is a guaranteed annuity without any conditions attached. In contrast, contingent annuities, such as bond interest, are risky. Life insurance premiums or pensions are paid on the condition that the insured person survives. Usually, an annuity is called an annuity. The calculation is limited to the amount of insurance each time. ^[1]

Fixed annuity: The payment of an annuity has nothing to do with the life and death of the annuity recipient, that is, whether the annuity recipient lives or dies, the annuity must be paid on schedule.