fixed annuity

fixed annuity definition - finance
An annuity investment that guarantees a fixed payment for a specific period or for the life of the insured. Insurance companies sell annuities and assume the risk that the insured will live for a long time. In contrast, a variable annuity is an annuity for which payments depend on the return earned on investments and are uncertain.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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