An annuity is a multi-year insurance interest-paying contract that has the insurance company’s guarantees of:
- Predictable income you cannot outlive
- Total protection from stock market risk
- Minimum interest earnings in every economic climate
Fixed – type of annuity pays interest on an annual stated rate of interested and is funded by a one time premium payment.
Fixed Indexed – this annuity pays interest based on a market index, e.g., the S&P 500, with limits on positive earnings BUT if the index is negative their is no change in the account value. The annuitant loses NO money. This funded by a one time premium payment.
Deferred – is a version of a fixed annuity, either fixed rate or indexed, that allows the owner to make payments to the annuity over time.
Variable – annuities are a securities product and are not guaranteed for earnings or income.
Death benefits for survivors
Living benefits – no penalty on withdrawals for terminal illness, chronic illness, and long-term care.
Periodic liquidity – limited withdrawal of money
Annuities avoid probate
“Act now, save now, and enjoy forever.”