Fixed Annuity: An insurance contract where the insurance company makes fixed dollar payments to the annuitant for the term of the contract, usually until the annuitant dies. The insurance company guarantees both earnings and principal.

Some Reasons People Purchase Annuities

  1. Multiple Guarantees
    • Principal and interest rates guarantees
    • Income guaranteed for as long as you choose a certain period of life
  2. Safety
    • Ensure your surviving spouse has a continuing income
    • Can provide money in case of catastrophic illness of if you (or spouse) need to enter a nursing home
  3. Liquidity
    • Flexible access to your funds with a variety of surrender-free withdrawal options
  4. No Sales Charges
    • 100% of your premium can earn interest
    • No automatic reset of surrender charges
  5. Tax Deferral
    • Your earnings will not be taxed until you make withdrawals or start taking regular distributions
    • Benefit from triple-compounding: Earning interest on principal, interest on interest, and interest on what you would have paid to taxes
  6. Control
    • Ability to choose a predictable income stream
    • Lifetime Income options: payments guaranteed to continue for as long as you live
  7. Flexibility
    • Multi-year rate guarantee products
    • Variety of contribution and payout options
  8. Accumulation
    • Long-term savings plan for future income stream
  9. Diversification
    • Supplement your retirement income
  10. Estate Planning
    • Proceeds are paid directly to your named beneficiary
    • May avoid the delay and expense of probate