There are three different types of deferred annuities.
- Fixed annuities guarantee your money will earn interest at a rate higher than the minimum guaranteed rate. The insurance company sets the rates.
- Fixed Index Annuities are a type of fixed annuity that earns interest based on changes in a market index, which measures how the market or part of the market performs. The interest rate is guaranteed to never be less than zero, even if the market goes down. Thus your principal is always protected and the interest you earn is locked-in and cannot be lost.
- Variable annuities earn investment returns based on the performance of the investment portfolios, known as "subaccounts," where you choose to put your money. The return earned in a variable annuity isn't guaranteed. The value of the subaccounts you chosse could go up or down. If the subaccounts goes down, you could lose money. Also, income payments to you could be less than you expected. We do not offer variable annuities.