Annuities
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What is an Annuity?

An annuity is an agreement for one person or organization to pay another a stream or series of payments. Usually the term “annuity” relates to a contract between you and a life insurance company, but a charity or a trust can take the place of the insurance company.

How does it differ from Life Insurance?

Both annuities and life insurance should be considered in your long-term financial plan. While both include death benefits, you buy life insurance in the event you die too soon and an annuity in case you live too long. In other words, life insurance provides economic protection to your loved ones if you die before your financial obligations to them are met, while annuities guard against outliving your assets.

  
 
Fixed Annuities

There are 2 types of insurance policies/contracts that offer fixed returns with no downside exposure. They are:
  • Deferred Annuities
  • Immediate Annuities

Fixed Deferred Annuities can give an investor a fixed guaranteed deferred rate during the accumulation period. Contract guarantees are based on the claims-paying ability of the insurer.

Fixed Immediate Annuities will pay a guaranteed payment for a specific period or for life.

Things to Think About

  • Outpace inflation and give you growth you need
  • Provide protection against market risk
  • Create an income stream that is self-managing and perpetual

Are Annuities Right for You?

Take this quiz to see if Annuities are right for you. See what you know, or don't know, about this investment option.

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Here's the single most important question for people who are planning for — or already into — their retirement years: How are you going to make your money last for life? With good health and good cheer, you're likely to be among the half of your age group that dances past your official life-expectancy age.
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