Annuities
Guaranteed income options for retirement that you cannot outlive.
Annuities are financial products offered by insurance companies that provide regular payments, often used for retirement planning. In exchange for a lump sum or series of payments, the insurance company guarantees periodic payouts either immediately or at a future date. There are several types of annuities to suit different needs. Immediate annuities start payments right away, while deferred annuities begin later, making them ideal for retirement planning. Fixed annuities offer stable payments, variable annuities’ payouts fluctuate with investments, and indexed annuities link returns to a market index like the S&P 500.
The key benefits of annuities include guaranteed income for life, tax-deferred growth, and protection from outliving your savings. They can be tailored to individual needs, providing security and peace of mind. However, annuities can come with fees and penalties, and they may be illiquid, so it’s important to understand the terms and costs before purchasing.
Educational content only; not tax, legal or investment advice. Life insurance strategies depend on underwriting, policy design and the issuing carrier; guarantees are based on the claims-paying ability of the insurer. Policy loans accrue interest and reduce the death benefit and cash value if unpaid. Talk with your own qualified professionals before acting.
Common Questions About Annuities
What is an annuity?
An annuity is a contract with an insurance company that can grow money tax-deferred and turn it into income, including income you cannot outlive. Types include fixed, fixed indexed and income annuities.
When does an annuity make sense?
Annuities can fit people who want predictable retirement income, protection of principal, or a way to cover essential expenses regardless of how markets perform.
What should I watch out for?
Look at surrender periods and charges, fees for riders, how growth is credited, and the insurer's financial strength. Withdrawals before age 59 and a half may face a tax penalty.
Educational content only; not tax, legal or investment advice. Talk with your own qualified professionals before acting.
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