Midland National Life Insurance Company has traditional fixed annuities, fixed-index annuities and immediate annuities for customers, according to the firm's website. Annuities offered by Midland National Life Insurance Company are investment contracts that pay interest dividends on investment income.
A traditional fixed annuity has a guaranteed interest rate for a specified time period, and that rate does not go below a certain percentage for the term of the annuity, notes Midland Financial. A fixed-index annuity credits interest to a contract based on specific market indexes, such as the S&P 500. Customers can choose what index to follow on an annual basis. When a certain interest rate gets credited on a fixed-index annuity, the rate does not go down based on market fluctuations. An immediate annuity guarantees income for a specified time period, and customers can start receiving money sooner than other types of annuities.
Different types of annuities exist for financial consumers, says CNN Money. A deferred annuity earns dividends until someone is ready to make withdrawals, such as closer to retirement age. A deferred annuity accumulates money. An immediate annuity pays out sooner, and this type of investment works better for people closer to retirement age. Deferred annuities can be converted to immediate annuities if someone's financial circumstances change.
Annuities can also be variable, according to the U.S. Securities and Exchange Commission. An insurance company pays a variable annuity based on what type of investment the customer chooses, such as mutual funds, bonds or stocks.