Annuities are long-term investments designed for retirement planning. They are a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you.
Annuities have the potential to grow tax-deferred, have death benefits to protect your beneficiary and optional living benefits to protect your retirement income.
Annuities are still one of the most misunderstood but versatile financial products available today. And now more than ever, the time may be right to take a look at what annuities have to offer. All guarantees are subject to the claims paying ability of the issuing insurance company.
A fixed annuity is a policy that you can purchase, and in turn, we will pay you a fixed, stated rate of return. This type of annuity is great for people who are looking for tax-deferred growth and want a fixed rate of return.
Fixed index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and earnings potential that is linked to participation in the growth, if any, of an index or benchmark. This type of annuity may be suitable for people who are looking for tax-deferred growth and want a minimum interest rate guarantee but also like the idea of potentially being able to benefit from rising markets.
An immediate annuity is for someone with a lump sum of money who is interested in immediately turning that amount of money into a guaranteed income stream.