Annuities offer a way to protect your future with guaranteed income for the rest of your life. Our financial experts can help you find the best annuity options tailored to your financial situation.
What is an Annuity?
An annuity is a contract with a life insurance company in which the individual pays a lump-sum premium upfront. In return, the insurer promises to pay back the amount in fixed, incremental payments over a predetermined period. The insurer invests the premium, and the returns fund these payments while compensating the company.
Conventional annuity contracts provide a predictable and guaranteed stream of income, often used for retirement. Payments continue until the death of the beneficiaries named in the contract or a predetermined termination date, whichever comes first. Annuities can help accumulate funds while allowing for significant increases in personal income through future lump-sum withdrawals, often avoiding taxes that would typically apply.
Immediate Annuities vs. Deferred Annuities
| Type of Annuity | Description |
|---|---|
| Immediate Annuity | Provides a series of payments in exchange for a lump sum, starting immediately. Payments can be level or increasing for a fixed term or for the lifetimes of one or two individuals. |
| Deferred Annuity | Primarily a savings vehicle that accumulates funds, with the intention of distributing them as an immediate annuity or lump-sum payment in the future. |
To learn more about the right annuity for you, please reach out:
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Would you like more information on how annuities compare to other investment options?