Annuities

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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

Types:

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.

Benefits:

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.”

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