What is a Good Rate for a Fixed Annuity?

When determining the best rate for a fixed annuity, one must first determine what your goal for the annuity is. Will it be for income now or when you retire? Or asset protection?

Many annuities will fit into all categories, but some excel better in specific areas.

Since an annuity is an insurance contract in which you pay a premium to receive regular payments for a given time period, most providers will guarantee the interest rate for a set period of time. Typically, three to 10 years.

Fixed annuities provide a peace of mind. When the economy is doing well or when a recession hits, your fixed annuity will provide the same outcome. Because fixed annuities aren’t vulnerable to the risks of the stock market ups and downs.

Insurance companies set the rates for fixed annuities. So, it’s best to shop around to find the best one that fits your goal. At Advanced Insurance Concepts, we compare all the top-rated insurance companies to find the best annuity rate.

According to annuity.org, the interest rates on fixed annuities, right now, are 2.5-3.0%. An insurance contract that may be less generous withdrawal provisions may have a higher rate, but may also contain risks.

The more years you have on the fixed annuity, typically offers a larger rate. For example, a three-year annuity may only offer a 2.25% while a 10-year annuity offers a 2.70%.

It’s generally not about chasing the highest rate of return you can find, but rather a safe financial decision.

Want to know more about fixed annuities? Call Advanced Insurance Concepts today and Jim Rooney will work with you to find the answer. Advanced Insurance Concepts works with a variety of insurance companies and all Medicare Advantage providers in Missouri and Kansas. He is licensed to sell Health, Life and Accident Insurance, so call Jim Rooney for all your insurance needs.