What is a fixed annuity?
Fixed annuities are insurance products that, after a single initial premium payment, earn a fixed rate of interest, allowing your money to grow on a tax-deferred basis until you decide to begin receiving annuity payments. That means you can expect solid growth, guaranteed, as long as the funds remain in the annuity until the end of any surrender charge period.
Fixed annuities often come in a variety of guarantee periods. This enables you to select the specific annuity that best reflects your individual needs. The interest rate is then secured for the entire guarantee period, which is ideal for retirement planning. This reliability is why many retirees seek out fixed annuities as a retirement solution.
Did you know?
Fixed annuities are known by a number of other names. Other terms used to describe fixed annuities include: multi-year guaranteed annuities (MYGAs); fixed rate annuities; fixed deferred annuities; and single premium deferred annuities.
Annuity Types
There are different types of annuities to choose from, each offering specific features that help meet a range of retirement needs. Identifying which type of annuity is right for you will depend on your individual goals, your timeline for retirement, and your short- and long-term financial needs.
Annuity types include:
Fixed Annuities
Fixed Index Annuities
Variable Annuities
Ohio State Life offers fixed annuity products specifically designed for individuals in retirement or nearing retirement.
FIXED ANNUITY OFFERINGS
Benefits of Fixed Annuities
Income & Growth
Fixed annuities are designed to help grow your retirement income – typically at higher interest rates than those offered for financial products. With a fixed annuity, income is tax-deferred until you access it, allowing your money to grow and compound faster than products that are subject to annual income tax.
Access & Liquidity
People often purchase fixed annuities to grow their retirement savings or provide lifetime income payments – but you can also get access to your money through flexible withdrawal terms and available riders.
Principal Protection
Since fixed annuities are contracts with insurance companies, your principal and interest are protected. And protecting your income and savings is an important step toward achieving your retirement goals.
Succession Planning
Fixed annuities can help families plan for the next generation, providing you a way to pass assets to your beneficiaries that may help avoid the lengthy probate process.