Harbourview 5

A fixed annuity is a contract with an insurance company that guarantees a specific interest rate on your investment for a set period of time. Your principal is protected and grows at the guaranteed rate, providing predictable, safe returns regardless of market conditions.

Fixed annuities offer a guaranteed interest rate that is locked in for the term, while fixed index annuities link returns to market index performance with a cap and floor. Fixed annuities provide more predictable returns, while fixed index annuities offer potential for higher gains based on market performance while still protecting your principal.

Yes, fixed annuities are considered very safe. They are backed by the financial strength of the issuing insurance company, which is regulated by state insurance departments. Your principal is guaranteed, and your returns are contractually locked in at the guaranteed rate.

Fixed annuities typically have very low or no annual fees. The insurance company earns money by investing your premium and keeping a portion of the returns. Early withdrawal may result in surrender charges as outlined in your contract. There are no management fees or administrative costs like you might find with other investment products.

Yes, but early withdrawals during the surrender period may result in surrender charges. Most fixed annuities allow penalty-free withdrawals of up to 10% of your account value per year. Check your specific contract for withdrawal provisions and surrender charge schedules.