Fixed Annuities
Description
Fixed annuities are contracts between insurance companies and investors. Fixed annuities are very similar to GICs (Guaranteed Investment Certificates) with investment options and terms that range from daily interest accounts to guaranteed terms up to 10 years.
Objective
The primary objective of fixed annuities is to provide investors growth of principal and interest.
Suitability
Fixed annuities are an investment alternative for investors seeking growth of principal for purposes such as retirement planning.
Features
- Guaranteed Interest Rate: Fixed annuities offer a fixed rate of interest guaranteed by the issuer.
- Guarantee of Interest and Principal: The payment of both interest and principal is guaranteed by the insurance company.
- Guaranteed interest income option: Interest is paid out monthly, quarterly, semi-annually or annually.
- Penalty for Early Withdrawal: There may be a market value adjustment charge if withdrawals occur before term maturity.
- Penalty for Early Surrender: Investors are assessed a market value adjustment charge if you redeem your investment prior to term maturity.
- Avoids Probate: Upon death proceeds are paid directly to named beneficiaries, thus avoiding probate and other estate settlement costs.
For more information, please contact your Edward Jones financial advisor*.
Insurance and annuities are offered by Edward Jones Insurance Agency (except in Quebec). In Quebec, insurance and annuities are offered by Edward Jones Insurance Agency (Quebec) Inc.
