Can Annuities Lose Money? 
There are two basic types of annuities . Fixed annuities offer guaranteed interest for the life of the contract . Variable annuities offer accumulations and payments that vary with the performance of the underlying securities . Variables can lose money . In between there are indexed annuities . Generally they offer a guaranteed interest rate , although it is often 0 % . In these plans you can participate in market expansion but need not take a loss when the market does . 