Annuities can help ensure a retirement strategy and income that lasts as long as you do, which is likely to be a very long time.

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Tax-Deferred Growth

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In general, during the accumulation phase of an annuity contract, your earnings grow tax-deferred. You pay taxes only when you start taking withdrawals from the annuity.

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Predictable Income For Life

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Income riders may be an effective vehicle for lasting financial security. When paired with the right annuity, an income rider can provide a steady income stream for the rest of your life.

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Death Benefits For Heirs

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The owner can designate a beneficiary to inherit the remaining annuity payments after death. After an annuitant dies, insurance companies distribute any remaining payments to beneficiaries.

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Certain level of guarantee

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You know what your rate of return will be for a certain period of time with the fixed annuities. For seniors looking for a predictable income stream, that may be a better alternative than putting money into equities.

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What type of annuity is right for you?

Your personal goals, objectives and risk tolerance will

determine the type of annuity that is right for you.

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Fixed Index Annuities

A form of fixed annuity that earns interest due to changes in a

market index, where the growth is bench-marked

to a stock market index rather than an interest rate.

 

Full protection of principal

FIAs are protected from the volatility of the markets. Your money

is never in the stock

market. Your crediting strategy tracks the

stock market, but you don’t own securities that can

fall in value.

 

Can potentially provide better rates than CDs

From the 1999 to 2010 many fixed index annuities have actually

outperformed the indexes they were correlated with. However,

they really aren't designed to outperform the stock markets

even though they do at times.

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Efficient way to plan for future income needs

Once you annuitize it with lifetime payout option or turn on the

income rider payouts, you

cannot outlive that income stream.

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Traditional Fixed Annuities

Fixed annuities are insurance contracts that pay a guaranteed rate

of interest on the account owner's contributions.

 

Predictable investment returns

The rates on fixed annuities are derived from the yield that the

life insurance company

generates from its investment portfolio,

which is invested primarily in high-quality

corporate and government bonds.

 

Guaranteed minimum rates

Once the initial guarantee period in the contract expires, the insurer can adjust the rate based on a stated formula or on the yield it is earning on its investment portfolio. As a measure of protection against declining interest rates, fixed annuity contracts typically include a minimum rate guarantee.

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Multi-Year Guaranteed Annuities

A multi-year guaranteed annuity, or MYGA, offers a

predetermined and contractually guaranteed interest rate

for a fixed period of time.

 

Less risk

Since a MYGA offers a guaranteed interest rate for the entire

contracted term, it’s considered a less risky investment than a variable or indexed annuity.

 

Flexibility and liquidity

The ability to take partial withdrawals yearly without a penalty

affords flexibility. For example, if you need money to cover a

large medical bill you could pull it out of your MYGA,

which might be a preferable option to taking money from an IRA or

getting a 401(k) loan.

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