Who Bears All The Investment Risk In A Fixed Annuity?

Shawn Plummer

CEO, The Annuity Expert

An annuity is a type of insurance since there is an amount at risk. An insurer relies on the insured living long enough so that the premiums paid and interest earned will equal or exceed the policy’s death benefit with an insurance policy. With fixed annuities, the insurance company is counting on the annuitant not outliving the principal and interest.

Who Assumes The Investment Risk With a Fixed Annuity Contract?

The fixed annuity contract owner does not bear the risk of investment loss. However with all fixed income investments, an owner is exposed to purchasing power risk that his or her purchasing power will erode over time due to inflation. 

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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