A straightforward annuity that provides guaranteed fixed payments beginning within 13 months of purchase.
An Immediate Non-Variable Annuity is a type of annuity contract that starts paying out a fixed, guaranteed income shortly after it is purchased—usually within one payment cycle and always within 13 months. Because payments begin quickly and the amounts are predictable, this financial product is commonly used by retirees or anyone who wants reliable, stable income without worrying about market fluctuations.
Understanding Immediate Non-Variable Annuities
An Immediate Non-Variable Annuity (also called a fixed immediate annuity or immediate fixed annuity) is designed to convert a lump-sum premium into a stream of consistent payments. Unlike variable annuities, the payout does not change based on investment performance. Everything is fixed: the timing, the amount, and the duration of the payments.
This makes it a popular choice for individuals seeking income security—especially those who cannot or do not want to take on investment risk.
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How an Immediate Non-Variable Annuity Works
When you purchase this annuity, you pay the insurer a lump sum. In return, the insurer begins sending you payments at the next scheduled interval—monthly, quarterly, semiannually, or annually.
Key characteristics include:
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Guaranteed payments: The payout amount never changes.
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Quick income start: Payments begin within 13 months of purchase.
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No investment risk: Returns are not tied to markets.
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Lifetime or fixed-period options: You choose how long the income lasts.
For many buyers, the appeal lies in knowing exactly how much money will come in, which helps with budgeting during retirement.
Types of Payout Options
Immediate non-variable annuities can be structured in several ways, allowing you to tailor income to your needs.
Common payout structures:
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Life-only: Payments continue for as long as you live.
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Joint life: Payments continue as long as you or your spouse lives.
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Period-certain: Payments last for a set number of years (e.g., 10 or 20 years).
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Life with period-certain: Guarantees payments for life, with a minimum payment period for beneficiaries.
Choosing the right option depends on whether you want lifetime protection, beneficiary support, or a blend of both.
Real-Life Example
Imagine Linda, age 65, has recently retired with $150,000 saved for income generation. She wants a dependable monthly income and doesn’t want to worry about market downturns.
She buys an Immediate Non-Variable Annuity and chooses a life-only payout. Because the payments start right away and remain the same each month, she can confidently plan her living expenses around a predictable income stream.
When an Immediate Non-Variable Annuity Makes Sense
This type of annuity can be a good fit if you want:
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Stable, predictable income with no investment fluctuations
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Guaranteed payments starting soon after purchase
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A simple structure without complex investment options
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Lifetime income protection
However, it may not be ideal if you want liquidity or the possibility of higher returns tied to markets.
Advantages and Considerations
Benefits:
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Guaranteed fixed payments
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Protection from market volatility
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Simple, straightforward structure
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Quick income start—ideal for new retirees
Things to consider:
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Funds become illiquid after purchase
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No inflation protection unless added as a rider
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Payments cannot grow with market gains
The Bottom Line
An Immediate Non-Variable Annuity is a reliable way to turn savings into guaranteed income that starts quickly and stays consistent. For individuals seeking financial security and predictable payouts—particularly during retirement—it offers a simple and dependable solution. Understanding how it works and evaluating your payout options can help you decide whether this type of annuity fits your long-term financial goals.
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