December 16th, 2007
What Is An Immediate Fixed Annuity?
An immediate fixed annuity is an annuity that is taken at the point of the retirement. The benefits obtained during the period of retirement are directly invested into the annuity in the form of a lump sum payment. Then the benefits are paid out to the investors over time, either for a fixed number of years, or even for the whole life. The immediate fixed annuity has a fixed rate of payments, and hence, the only possible limitation would be the non-increase of the payments if there were a condition of inflation in the future.