Simply stated, a fixed annuity is a financial product that provides either a fixed income over a period of time or provides an income over a fixed period of time. The first definition is the most common type. Whereas the latter is more often called a fixed period annuity.

The annuity portion of the word referes to how distributions are given out. To annuitize is to provide period payments from a determined dollar amount available in the account you are drawing funds out of.