Annuity type

Traditional Fixed Deferred Annuity

A tax-deferred savings annuity where the insurer declares the rate each year — guaranteed never to fall below a floor.

Principal: Yes — account value, principal intact
Liquidity: Limited — surrender charges apply
Backed by: State guaranty association, within limits

The decoder

What the quoted number means

A current declared rate — renewable at the insurer's discretion

The advertised number is this year's declared rate, often with a first-year bonus. After the guarantee window, the insurer resets the rate at its discretion, subject only to a contractual minimum that can sit far below the teaser. The quote is real; its lifespan is the fine print.

Like a MYGA, but with the rate declared annually rather than locked for a multi-year term. Contracts carry a minimum guaranteed rate; the current rate can renew lower once the initial guarantee lapses.

These reward savers who watch renewal rates and are willing to exchange contracts when an insurer's renewal generosity fades — passivity is what the pricing counts on.

Who it tends to fit: savers who will monitor renewal rates.

The honest comparison

Fixed deferred vs. a payment stream

A payment stream's estimated yield is fixed at purchase for the entire schedule — there is no renewal-rate risk because there is no renewal. The fixed deferred annuity answers with liquidity and guaranty cover. Which matters more depends on whether the money is savings or committed income capital.

What the secondary market pays right now is on our current estimated yields page; for rate context on this product family, see fixed annuity rate context.

View Available Income Options All Annuity Types

Fixed deferred questions

What happens after the first-year rate?

The insurer declares a new rate, which may be lower — subject to the contract's guaranteed minimum. Renewal-rate behavior varies widely by carrier, and it is the single most important thing to ask about before buying.

What these assets are, and what they are not

Guaranteed and life-contingent structured settlement payment rights, and lottery payment rights, represent the right to receive factored payments that Pacific Structured Assets purchases and assigns to investors through a court-approved process. They are purchased at a discount to their total scheduled payments.

These payment rights are NOT annuities, NOT insurance products, and NOT securities registered with the U.S. Securities and Exchange Commission. They are not bank deposits, are not FDIC-insured, and are not protected by any state insurance guaranty association. The industry term “secondary market annuity” refers to these payment rights and does not mean you are purchasing an insurance annuity contract.

You acquire the right to receive the payments, not the underlying annuity. The annuity itself does not change hands. Unlike the original structured settlement annuity, which may be shielded from creditors under applicable law, the assigned payment rights you purchase generally do not carry that creditor or bankruptcy protection.

Assigned annuities, offered as a separate product line, are existing insurance annuity contracts reassigned to a new owner through a change of ownership or an irrevocable change of payee.

These are long-term holdings with limited liquidity, and may not be suitable for every investor. There is no public trading market and no daily price. Resale or reassignment of a payment stream to another buyer may be possible, and Pacific Structured Assets can assist, but a resale is not guaranteed and the price it would bring is not guaranteed. Because the payments are fixed, that resale value moves with prevailing interest rates: an investor could realize a gain if rates have fallen since purchase, or a loss if rates have risen. These holdings are best suited to capital an investor can commit for the long term. Nothing on this website is tax, legal, financial, or investment advice. Consult your own advisors before investing.

Other types: SPIA · DIA · QLAC · MYGA · Fixed indexed · RILA · Variable

Pacific Structured Assets

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