Insurance companies offer annuities as a savings option through Insurance agents. In this mode of wealth accumulating investment, investors pay an amount, which is returned by the annuity after a fixed time period. The principal amount is guaranteed with fixed annuities. Annuities allow investors to create safe, tax-deferred retirement savings plans.

Annuities can be structured by varying the duration of the accumulation period , the length of payments and various other factors. One of these options is fixed annuities which provide security to the investor. In the case of fixed annuities, the investor is guaranteed a minimum return for a fixed time period. In addition, there can also be a minimum benefit paid. This makes it predictable for the investor, ensuring the amount of return he will get during the term of the contract.

A fixed annuity can be funded with one large payment, or with a series of payments over time. Returns on traditional fixed annuities do not rely on increases in the stock market or other equity investments and funds are guaranteed to grow. There is a stable interest return and future cash flow from the annuity to the investor.

One option for an individual with fixed annuities is to choose an immediate income annuity. After making a lump sum payment, the investor then receives immediate fixed monthly income, thus turning a lump sum into a retirement income stream.

When investing in a deferred payment annuity, you may choose to deposit a lump sum at the beginning which builds interest over time. Or, you may deposit money into your annuity over the course of time, and your returns will be paid out to you after a set period. This type of fixed annuity is commonly used by investors as a savings plan for retirement. The annuity value continues to grow and compound while in deferral. When additional income is needed, the investor can choose a payout structure to suit his needs.