What Is Fixed And Variable Annuities? 
Fixed annuities invest your premium into conservative , long term securities -LRB- usually bonds -RRB- chosen by the company . These steady investments allow the company to guarantee you fixed payments later on . Your payments are also guaranteed to last a number of years or a lifetime , determined in advance . Variable annuities are invested in stocks and more risky investments which the annuity holders choose themselves . They may have some guaranteed elements , but also have the potential to pay more than a fixed annuity , or less than a fixed annuity , due to that element of risk . 