How Do Guaranteed Annuities Work? 
Guaranteed annuities are the basic annuities underwritten by insurance companies . In these annuities the risk of investment and life expectancy are all born by the insurance company . For an immediate annuity the company guarantees a lifetime stream of income . If the annuity is a deferred annuity they also guarantee that the annuity will increase in cash value at a minimum specified rate of interest and then guarantee the proceeds will purchase an immediate annuity at a guaranteed rate . 