Annuity
Traditional Fixed Annuity
Offers a declared fixed interest rate that is guaranteed for a specific period and guaranteed to never go below a specific percentage.
Index Annuity
Interest rate credited to your annuity contract is linked to specific market indices that you can choose on an annual basis. Once the interest is credited you are guaranteed that it can never go down based on future market fluctuations.
Variable Annuity
Offers you the potential for higher returns. When you purchase a Variable Annuity you have the ability to choose from a variety of funds using a variety of investment strategies. Your account value can increase or decrease depending upon the performance of the investments you are using.
Variable annuities are suitable for long-term investing, such as retirement investing, and are subject to market risk.
Immediate Annuity
You are guaranteed an income stream ranging from a specific period of time to your entire life. An immediate annuity offers a solution to the problem of outliving your money.
Benefits of an Annuity
Annuities are an excellent tool to help you plan for your financial security. They offer a variety of benefits including tax-deferred growth, ability to avoid probate, and lifetime income.
Tax-Deferred Growth
Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be paid as taxes. Your principal earns interest, the interest compounds within the contract, and the money you would have paid in taxes earns interest.
May Avoid Probate
Annuities offer the ability to name a beneficiary, which may minimize the expense, delays, and publicity that comes with probate. Your named beneficiary may receive death proceeds as either a lump sum or monthly income.
Lifetime Income
An insurance company can provide you with a guaranteed income stream with the purchase of a tax-deferred annuity. You have the ability to choose from several different income options, including life or a specific period. With non-qualified plans, a portion of each income payment represents a return of premium that is not taxable, reducing your tax liabilities.
