There are different types of annuities. While every insurance company may offer slightly different annuity products, there are usually three types of annuities. The first type of annuity is called a Fixed Rate Annuity, the second is a Variable Annuity and the third is an Equity Indexed Annuity. While all types of annuities offer their own advantages, choosing the right annuity product depends on your specific financial situation.
Another type of annuity is the Fixed Rate Annuity. Fixed rate annuities are perhaps the most popular annuity product. With a fixed rate annuity you make an initial lump sum payment or a series of small payments in the beginning when setting up your annuity and the insurance company guarantees that you will receive a fixed interest rate on your investment over the course of the term. Besides offering you a fixed interest rate, most insurance companies also guarantee payments to be made in a fixed dollar amount (for instance a term of 20 years, payments of $400 per month).
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