ANNUITY FORM
GET a Fixed Annuity Quote from ALL the ANNUITY COMPANIES.
We do ALL the shopping for you so you don’t have too. Best of all our Service is Free and there is no obligation. As your broker our goal is to get you the best possible retirement annuity income and terms you deserve. We let the annuity companies compete for your business.
Fixed Annuity Calculator
When you purchase an annuity, you are buying a stream of payments sometime in the future. 
Part of this investment decision is the timeline of your future payments. One way to structure your annuity is over a fixed period of time. These annuities are called fixed annuities. This article discusses the features of fixed annuities as well as who should invest in these products. If you think a fixed annuity would meet your needs, you can use our free fixed annuity calculator to research rates from the best companies in the industry.
Payments
A fixed annuity pays out a guaranteed, predetermined number of monthly payments in exchange for your initial investment. This contract tells you exactly how much you will receive in future payments. Once the fixed period of this investment is over, your monthly payments stop.
Unlike a life annuity, a fixed annuity is not based on your life expectancy. If you die during the payout stage, payments continue to your heirs.
The amount of your monthly annuity payments depends on the length of your contract. A longer contract makes smaller payments than a shorter contract with the same investment. A longer contract makes smaller payments because it will make more payments in total. As a result, the annuity makes lower payments so the investment does not run out of funds.
Ownership
When you buy an annuity, you need to decide on the number of contract owners. An annuity with only one owner is called a single annuity. An annuity with multiple owners is called a joint annuity. While ownership has a significant impact on payments for a life annuity, it does not affect the payments of a fixed annuity. A fixed annuity makes the same number of payments regardless of ownership. This factor is important for life annuities because these contracts make payments based on the life expectancies of their owners.
Advantages
The strength of a fixed annuity is it guarantees a precise rate of return on your investment. Your annuity company will tell you exactly how much they will pay you in return for buying a contract. Either you or your heirs will receive all payments in full from a fixed annuity. There is no chance of an investment loss on this contract.
This feature contrasts the ambiguity of buying a life annuity based on your life expectancy. A life annuity only makes payments as long as you are alive. If you die early in the contract, payments do not continue to your heirs. This creates a risk that a life annuity does not make enough payments to justify its initial investment. A fixed annuity solves this problem.
Disadvantages
While the fixed payment stream of a fixed annuity is its main advantage, it can also be a problem depending on your situation. The payments of a fixed annuity have a set expiration date. If you are relying on your fixed annuity as a retirement plan, you risk outliving your income. This is not a good product if you need income for the rest of your life.
Another problem with fixed annuities is they do not offer any flexibility in your payments. Once you decide on a payout structure, you cannot change the timing of your payments. You cannot take several months of payments out early as a cash advance. You also cannot delay unneeded payments to a future date. While your annuity company may let you receive a lump sum of cash for cancelling your contract, this should only be used as a last resort because the company will charge a penalty on your cancellation. This lack of flexibility is a problem not just with fixed annuities, but with annuity contracts in general.
Suitability
The fixed annuity is best used when matched against an obligation with a fixed lifetime. Good uses could be paying off a loan or your home mortgage. Since these loans have a fixed lifetime of payments, you can design an annuity that perfectly matches these costs in terms of length and value. These products also work well if you need income for a temporary period. For example, if you are still a few years too young to receive pension payments, you could use a fixed annuity to bridge the gap until you are eligible for the pension.
Fixed annuities are not good investments for periods with an uncertain length. The most common improper use for fixed annuities is retirement. Since these products eventually expire, you risk outliving your fixed annuity payments and will have no way to extend your benefits. A life annuity is a much better tool for these situations because it makes payments as long as you are alive.
If you like the lifetime payment structure of a life annuity but are worried about wasting your investment should you die early, you can create a hybrid annuity between a fixed and life annuity. A hybrid annuity is a life annuity with a guaranteed payment period. If you die during the guaranteed period, payments continue to your heirs. If you outlive the guaranteed period, payments continue until you die, like a life annuity. This feature comes at a cost. A hybrid annuity has a lower payout rate than a pure life or fixed annuity. Be sure that you still earn enough monthly income from this product.
Fixed Annuity Calculator
If you like the features of a fixed annuity, you can use our fixed annuity calculator to compare the payout rates of different companies. You can also use this tool to see how different time period impact your monthly payments. To use the calculator, simply enter in your planned investment and the number of years you want monthly payments. The annuity calculator will search the databases of the largest annuity companies to find their most up-to-date quotes. You will receive this information by email or by phone.
