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Fixed Index Annuties offer many benefits to investors. For example, they can provide someone who is retired or close to retirement a guaranteed income. To understand the benefits of fixed annuities in more detail, it is important to first understand the details of how annuities work. Fixed annuities are set up as single premium investments that guarantee the purchaser a minimum rate of interest for the annuity's term. Two basic types of fixed rate annuities are available to purchasers - life annuities and term certain annuities. Life annuities pay a fixed amount at regular intervals until the annuitant dies. They allow the purchaser to have a secure source of income that they do not have to worry about outliving. Term certain annuities, on the other hand, pay the set amount until the contract expires.