That risk includes possible loss of principal, but it is countered by the potential for greater growth than you would get with fixed annuities. A popular new type of fixed annuities are equity indexed annuities. With these products, the company assumes the risk and guarantees a minimum interest rate. At the same time, the annuities offer you the chance to enjoy additional growth through current interest linked to the performance of the stock market, as measured by certain respected indexes. So, if you're uncomfortable with the risk of a variable annuity but would still like the possibility of more growth than you'd get with a fixed annuity, you may want to consider an equity indexed annuity.
Individual annuities cover only one or two people.
They are generally flexible premium, deferred annuities established by a company or organization as qualified retirement plans for group members. Benefits of Annuities Annuities are designed to be long-term financial planning tools. However, that doesn't mean you can't have access to your money if you need it Penalty-free withdrawals. Most deferred annuities have a free withdrawal provision. Systematic withdrawal plan.