- An annuity contract where the insurer agrees to make fixed payments to the annuitant until the termination of the contract, which usually occurs when the annuitant dies. A fixed annuity has a guarantee of principal and earnings from the insurer.
static annuity, constant annuity, guaranteed annuity
Related Terms and Acronyms
- Annuity Certain — Definition,
- A type of annuity that makes payments to the annuitant for a set term; payments stop when the agreed upon term ends, even if the annuitant is still alive after the term ends.
- Annuity Contract — Definition,
- A contract that outlines each party's responsibilities as they relate to an annuity.
- Cash Refund Annuity — Definition,
- An annuity that refunds any remaining balance to the beneficiaries or the annuitant's estate when the annuitant dies.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Fixed Premium — Definition,
- Insurance or annuity premiums that stay level for a specific period of time.
- Guarantee Period — Definition,
- A time period where income payments from an annuity are guaranteed.
- Hybrid Annuity — Definition,
- An annuity with both fixed and variable annuity elements.
- Immediate Payment Annuity — Definition,
- An annuity where payments to the annuitant start immediately after the annuity has been set up.
- Investment Income — Definition,
- Income that is earned from investments such as interest, dividends, and capital gains.
- Level Payment — Definition,
- A method of repayment where periodical payments of principal and interest are made in a certain way so the payment amount remains constant.
- Level-Premium Insurance — Definition,
- Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
- Life Annuity — Definition,
- An annuity that will continue to make payments until the death of the annuitant.
- Split-Funded Annuity — Definition,
- Two annuities purchased together, one with a deferred payout and the other with an immediate payout.
- Straight Life Annuity — Definition,
- An annuity that stops all payments upon the annuitant's death.
- Variable Annuity (VA) — Acronym,
- An annuity where the payments received by the annuitant in the income phase of the annuity vary depending on how well the insurer's investment portfolio has performed.