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What Annuities Are

An annuity is a contract you sign with an insurance company. You agree to make a payment or payments to the insurance company, so they’ll grow that money for you and pay it back monthly in your retirement.

Annuities come in 3 basic forms: Fixed, variable, and hybrid.

  • Fixed annuities have a set, guaranteed rate of interest, typically comparable to that of a Certificate Account.
  • Variable annuities let you choose from certain investments, and they pay out in your retirement, based on how well those investments did. 
  • A hybrid annuity allows investors to split their funds between fixed-rate and variable-rate components.

Other Annuity Considerations

Annuities are complex. If you decide they’re right for you, you’ll have to make a few decisions about how you’d like yours to work:

  • Do you want to make one payment or multiple payments over time? 
  • When do you want the payout, now or deferred to the future? 
  • What kind of payments do you want, over a lifetime or a fixed number of years?

Are annuities right for you?

Everyone’s situation is different, so when considering an annuity, take stock of your priorities and your financial goals.

Some people choose annuities because you can name a beneficiary and also there are no limits on how much you can put into the account in a year. And with hybrid accounts, you can divide your savings between conservative assets that offer a low-but-guaranteed rate of return, and riskier assets that offer the potential for higher returns but limit loss potential. As in any annuity, the goal is to create a steady stream of income during retirement.

Others choose against annuities because there are often many fees associated with these retirement accounts, including surrender charges, insurance charges, commissions and more.

A+ Tip: If you have questions about your retirement future, one of our Affinity Plus Investment Center Representatives can help build a plan that suits your needs.


Variable Annuities are offered by prospectus only. the prospectus contains important information about the product, including fees, taxes and expenses. Obtain a prospectus from your financial professional and read it carefully before purchasing.

Affinity Plus Investment Center professionals are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members.  Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution.  CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America.