Is My Fixed Annuity Safe? 
An annuity is a contract between you -LRB- the annuitant -RRB- and the insurance company -RRB- . Fixed annuities are a type of annuity that has a defined , guaranteed payment structure . The annuitant agrees to pay the insurance company a single payment , or a series of payments , and the insurance company agrees to pay you a fixed amount -LRB- income -RRB- , starting immediately -LRB- an immediate annuity -RRB- or at a later date -LRB- a deferred annuity -RRB- , for a specified time period -LRB- this could be for 10 years , 15 , years , 20 years , for life , etc. -RRB- . You generally want to have the annuity through a financially sound company -LRB- e.g. `` A '' rated or higher by rating companies such as A.M. Best , Moody 's , etc. -RRB- . If you 're concerned about what would happen to your money if the annuity insurer went bankrupt , please be aware there are protections in place in case something like that happened . In each state , insurance companies are required to pay into a state-operated guaranty fund that , in short , acts like an insurance company for the insurance company . It can pay out funds to the beneficiaries of the annuities up to the funds specified maximum allowances . I hope the information is helpful - please feel free to contact me for help and if you have any other questions . Thanks very much . 