Rates change. Staying up to date is key. This 2025 snapshot offers a quick comparison of 2025 fixed annuity rates. You can use it to guide your clients with confidence. Whether you’re reviewing short-term options or long-term strategies, understanding today’s rates helps shape tomorrow’s retirements.
What Are Fixed Annuities and How Do They Work?
A fixed annuity is a contract. Your client makes a lump-sum payment. In return, the issuing insurance company promises a fixed rate of credited interest. The rate stays the same for a set period. It’s predictable. It’s stable. And it’s not affected by the stock market.
Unlike variable annuities, fixed annuities protect your client’s money from market swings. They are not FDIC-insured. They are not backed by a government agency. The annuity contract relies on the financial strength of the life insurance company that issues it.
Many fixed annuities are deferred annuities. That means earnings grow tax-deferred. Your client doesn’t owe income tax on interest until they withdraw. If they annuitize, they may receive lifetime income. Some products include a death benefit. Others offer optional riders.
Midwestern Marketing (MWM) works with financial professionals to find annuities that satisfy your client’s objectives and financial profile. Whether you need a strong fixed rate or flexible features, MWM has you covered.
How Interest Rate Trends Have Shifted in the Past Quarter
Fixed annuity rates have ticked upward since January. Interest rates play a big role. Life insurance companies adjust their credited rates based on market yields. They also respond to client demand. Right now, clients want safety. And growth. Fixed rate products meet both needs.
Many clients prefer stability. Financial professionals now have a solid opportunity to revisit client portfolios. A better fixed rate today can make a big difference later.
What Affects Fixed Annuity Rates?
Several things shape a fixed annuity’s credited interest:
- Interest Rates: When rates rise, carriers offer more competitive returns.
- Duration: Longer terms usually come with a higher fixed credited interest.
- Carrier Policy: Every issuing insurance company has its own investment approach.
- Market Value Adjustment (MVA): This feature adjusts surrender values based on market changes. It can work for or against the client.
Understanding these factors helps you match the right product. MWM gives you clear comparisons and carrier insights. You’ll know how each piece fits into the puzzle.
How to Compare Annuity Terms and Conditions
Not all contracts are alike. Always read the fine print. Look at:
- Surrender Charges: Know the penalty if your client takes money out early.
- Guaranteed Interest Rate: Some rates are fixed for the entire term. Others reset.
- Liquidity: Some contracts allow free annual withdrawals.
- Death Benefit: Make sure the client’s family is protected.
- Tax Treatment: Fixed annuities offer tax deferral. But withdrawals are taxable. That impacts retirement plans.
Also, remember that rules can vary. In states like New York, contracts may differ. MWM helps you stay compliant.
Tips for Helping Clients Choose the Right Fixed Annuity Option
Start with the basics. What’s the client’s financial situation? Their goal? Growth? Income? Preservation?
After reviewing and understanding the client’s financial profile and ensuring they have enough liquid assets to cover unexpected expenses, look at what they are trying to accomplish with a portion of their funds earmarked for an annuity or income. After narrowing down their goals and objectives, look at the term of the product that aligns with their needs. A multi-year contract may offer more, but only if it matches the client’s timeline. Consider tax deferral: Clients who want to delay income tax may benefit from deferred annuities.
If income is the goal, explore income annuity options. Some clients want lifetime income. Others need short-term access. Be sure to check surrender charges and whether a market value adjustment applies.
Finally, look at financial strength. Reputation. Support. MWM helps you evaluate it all.
2025 brings solid options for fixed annuities. The rates are strong. The terms are flexible. The tax deferral benefit is clear. For clients who want predictable growth and protection, fixed annuities continue to deliver.
As a financial professional, you want simple answers and reliable support. MWM gives you both. From product selection to rate comparisons, MWM helps you succeed with top-tier annuity products and tools.
Ready to help your clients grow retirement savings and secure income for life? Contact MWM today. Let’s find the right fixed annuity together.
Midwestern Marketing is a true FMO where a handshake still means something. We value our agents and take service and contracting to a new level. The teamwork and principles by which we operate are reflected in the thousands of agents we serve nationwide. Feel free to call 877-278-3775 or email us at info@midwesternmarketing.com. We are certain we can help you grow your business!