Insurance companies issue annuities, a form of investment that are generally offered via Insurance brokers. Once an investor pays into the annuity, the annuity gives returns for a set period of time. With fixed annuities, the capital invested is guaranteed. They are a safe, popular and tax-deferred way to increase your wealth.

There are several ways to structure annuities, varying the duration of the accumulation period, the length of payments, and other factors. One option is fixed annuities, which offer security to the investor. With fixed annuities, the issuing company guarantees a minimum interest rate to the investor for a set period of time. Often, there is a minimum benefit paid out as well. This way, the investor knows exactly what income to expect for the entire duration of the contract.

A fixed annuity offers you a predictable rate of growth for your investments, and guaranteed future cash flow. You won't experience the swings in value that you would see if you put the same money into the stock market. And, you have the choice to make one single upfront payment, or to make fixed payments over time.

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 returns, thus turning a lump sum into a retirement income stream.

With tax-deferred annuities, the investor either deposits a lump sum and accumulates interest over time, or makes payments into the annuity, with the returns being paid out after a set period of time. This kind of fixed annuity is often used as a retirement savings plan. Many individuals fail to plan for their income needs in retirement. In many cases a fixed immediate income annuity can fill the gap.