What Are Fixed And Variable Annuities? 
I 'm going to keep this simple and generic as we can spend a lot of time reviewing this question . First , what is an annuity ? An annuity is simply a contract between you and an insurance company where they offer market like gains or guaranteed gains like in a CD over a length of time , usually anywhere from 3 to 15 years . A fixed annuity simply means the money is not invested in the market although growth may be tied to gains but you will not get 100 % of gain but you also will not see the losses either due to the downside guarantees . A variable annuity invests money in the market with all the risks associated to market investing . There usually are death benefit guarantees where if you die before taking money out , the initial amount of premium is returned to your heirs . Please contact a registered representative to get more details and a prospectus . 