Fixed
Rate Annuity

Variable
Rate Annuity

Retirement
Income

Rates of
Return – how fast your money grows

Slower tax-deferred growth; a fixed rate of return.

More potential for tax-deferred growth and greater control of how money is invested, but a greater risk for loss.

Provides a guaranteed stream of income for a period of time selected by the certificate (policy) owner.

Risk Factors

Locked in for one or more years, minimum guaranteed accumulation rate.

Risk associated with each sub-account

Same as fixed or variable, depending on what type of contract you select

Additional charges or fees

100% of your money goes to work immediately for you.

Varies.

Most fixed rate annuities do not, but some still do.

Tax-deferral

Yes

Yes

Yes

Comments

This is a good option for people who want the lowest risk.

This is a good option for people who can assume some risk in their investments.

This is a good option for people who want a predictable source of income.