Fixed Annuities

What is the difference between a fixed and a variable annuity?

Fixed promises a fixed amount of income for a specified period. Sub on account is invested in Treasury bills, bonds, etc. variable subaccount is linked to the stock market. The monthly income varies unless additional insurance is purchased (higher premium paid) An annuity is only as good as the company insutance. AIG sold a lot of VA. I bet the policy holders wish they could leave, but once an annuity, you're stuck. Think twice, read all you can. These are sold by sellers who earn huge commissions. You can make a big sound.

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