How Do Hybrid Annuities Work? 
Hybrid annuities are fixed indexed annuities , equity indexed annuities , or variable annuities with a rider that offers lifetime income . Some also offer enhanced death benefit , long term care , and/or home health care . Hybrid annuities work by allowing the buyer to invest funds in a fixed account as well as variable account . The fixed account provides the guaranteed funds and the variable components provide for greater return by investing in non-guaranteed securities . 