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.

Annuities - Guaranteed Returns from Allianz

I just back from dinner with my local Allianz rep, and realized, among other things, I am in the wrong business! Annuity sales are quite strong at Allianz, and other annuity providers, primarily because of their guaranteed return products. In the past, I have pointed out that these investments are often merely overpriced insurance (read: money markets combines with minimal equity exposure), but give credit to the actuaries, for they have devised some intriguing new offerings.

In the case of Allianz, they offer a program that will guarantee you the "high water mark" over a ten-year period. Not sure what exactly the cost is, but I'm guessing around 1.5% or so. Very interesting. Check with your investment adviser to see if he can provide more details