What Are Annuity Rates and How Are They Set?
Chris Magnussen explains that annuity rates depend on the type of annuity and factors like age, gender, timing, and insurer, with each type offering different ways to grow or receive income.
Video Transcript
The rates offered by annuities are based on the type of annuity that we're working with. With fixed rate, fixed term annuities, those reprice every Monday and are good for the week. Rates on immediate annuities aren't a fixed rate. They are actually determined based on your age and your gender and when that payment is to begin. Index annuity rates vary from insurance company to insurance company, and they will come out occasionally and offer higher participation rates or higher caps, which mean more money in your pocket.
