The insurance company annuities are the contract between the investor and the company. According to this contract the investor will pay money to the company and as a result the company will pay monthly income once the term of the contract gets over. There are main two types of insurance company annuities- fixed rate annuities and variable rate annuities. For fixed rate annuities the interest rates are high and there are minimum risks involved. The variable rate annuities may be risky if the interest rates drop all of a sudden.