Annuities Fixed and Variable

An insurance contract in which the insurance company makes fixed payments to the annuitant for the term of the agreed upon contract, usually until the annuitant dies or otherwise cancels the contract. The insurance company (annuity) guarantees both earnings and principal. These are very common, and generally seem safer to most people, though most investors and registered investment advisors would be wise to research these, as they often are embedded with hidden fees and expenses.