Is A Fixed Annuity A Security? 
Is a fixed annuity a security ? Technically no . An fixed annuity is an insurance product , governed by your state 's insurance laws . With a fixed annuity , the insurance company offers a set rate of return for one year or more and bears the investment risk for the plan . It is up to the insurance company to invest those funds to meet the obligation they 've stated for that year . Clearly their goal is to do better than the stated rate of return as that is part of their profitability , but even if they do n't make the return they promise , they still have to pay it . 