Pay at a fixed rate. Fixed interest rate known in advance. Locked-in for one or more years. Anyone who wants lower risk.
Pays based on the value of an external index, like the S&P 500 stock market index. More upside potential than a fixed annuity with a minimum guaranteed interes.
You actually own investments inside the account. More potential for tax-deferred growth with potential for loss.
You give the insurance company money in one or more payments.
Your annuity will earn a fixed rate of interest that is guaranteed by the insurance company based on the growth of an external index.
You defer paying taxes on your contract's interest until you receive money from contract.
After a period of time specified by your contract, you may then receive the amount allowed by your contract in a lump sum, over a set period of time, or as income for the rest of your life.