The fixed annuity may be more suitable for savers, while the variable annuity may be more suitable for investors.

Fixed annuity-safety, certainty, and no investment decisions
A fixed annuity offers safety of principal and earns a guaranteed interest rate for a certain period of time. A fixed annuity is a low-risk product for people who want to know how much they'll be earning, and generally offers more safety but lower potential return than an investment-based variable annuity.

Remember that your annuity purchase is not FDIC insured. Fixed annuity purchasers should research an insurance company's financial position thoroughly, because a guarantee is only as strong as the company offering it.

Variable annuity-growth potential and choice of investment options
A variable annuity allows you to create a personal investment strategy by choosing among a range of investment options that will fluctuate in value. A variable annuity is designed for people willing to take more risk with their money in exchange for greater growth potential. A variable annuity generally has higher fees and expenses than a fixed annuity.

Both offer income management and protection for beneficiaries
When you're ready to retire and draw income, both types of annuities offer income management options, including guaranteed income for life. Both may also offer a protection feature for beneficiaries, such as a death benefit or a guaranteed return of principal. This feature protects your money for your family or other beneficiaries in the event of your death.