Annuities

What is an Annuity?
An annuity is basically a contract between you and an insurance company, whereby the insurance company makes a series of income payments to you in exchange for premiums you have paid. Annuities may help you:

  • Receive retirement income payments for as long as you live
  • Protect beneficiaries with a death benefit
  • Diversify your investments
  • Provide an opportunity for growth on a tax-deferred basis
  • Avoid outliving your assets


Types of Annuities:


Traditional fixed annuity:
Provides a fixed rate of return at a rate determined by the insurance company. This rate is guaranteed for a certain period of time.

Fixed index annuity:
Combines the principal or premium guarantee of a traditional fixed annuity with interest earnings linked to the performance of stock market index.

Variable annuity:
Provide you with a greater opportunity for asset growth through a variety of investment choices.

Annuities are also categorized based on how you make payments, Single premium or Flexible premium, and when you take income, immediate or deferred:

Single Premium Annuity:

  • Can provide you with a way to turn a large sum of cash into guaranteed income.
  • For those who have cash from an inheritance, legal settlement, business sale, or those nearing retirement, who have assets accumulated in a retirement plan or other savings vehicle.

Flexible Premium Annuity:

  • Funded over a period of time, generally years.
  • Allow you to pay premiums of differing amounts on a set schedule.
  • Your assets accumulate on a tax-deferred basis.

Immediate Annuity:

  • The insurance company immediately begins payments for life or for a specified amount of time in exchange for your one-time contribution.
  • Regular payments can be received on a monthly, quarterly, semiannual or annual basis.

Deferred Annuity:

  • Can be funded through a single premium or through flexible payments over time.
  • Can potentially help you to accumulate money for retirement, especially over an extended period of time.
  • Your money grows tax deferred, which means you pay no taxes on earnings until you withdraw your money.


For additional information and to receive annuity rates from different insurance companies please contact us.