In the simplest terms, a fixed term annuity is a contract you make with an insurance company. You hand over a lump sum of cash, and in return, they promise to pay you a guaranteed income for a specific number of years—say, five, ten, or fifteen. That’s it. No stock market roller coasters, no late-night worrying about your portfolio.
It’s like buying a season pass to a theme park, but the “rides” are monthly rent payments, grocery bills, and that guilt-free vacation you keep postponing. The best part? The amount you get is fixed from day one, so you know exactly what’s coming in.
