How Safe Are Fixed Annuities? 
Tax deferred , fixed annuities are based on the contractual claims in the annuity policy . The contractual claims in the annuity policy are as good as the financial strength and claims paying of the annuity company that issued the policy . Generally , fixed interest rate annuities guarantee a rate for a period of time like 5 , 7 or 10 years . The annuity insurance companys portfolio is generally dominated by government bonds . 