What is an Annuity?
annuity is a legal contract between you and the insurance company. You make a
single premium payment or periodic payments over a period of time.
company promises to return your principal plus specified contracted yields, paid
in a lump sum, or over a specified period of time or guarantee a lifetime income
to you that you can never out live.
Two types of annuities are available:
Immediate and Deferred.
An Immediate Annuity derives
its name because it starts payments immediately or with in one year.
Immediate Annuity payments are guaranteed for a fixed period, for instance
10 or 20 years. Or you can choose to take a lifetime income that you can
not out live. Insurance companies also offer period certain payments that are
guaranteed. If you were to die prematurely, payments would be paid to your beneficiary
for the balance of the period chosen. For instance if you set up an immediate
annuity with a 10 year certain, and were to die a year later, then your
beneficiary would continue to receive payments for the balance of ten years, or
9 more years.
If you are married, you can also take a joint period certain,
that is based on both you and your wife.
Check out -- Immediate
A Deferred Annuity, unlike an immediate annuity that
starts making payments to you, deferred annuities are designed for accumulation.
Deferred annuities are also tax-deferred during the accumulation period,
until you start receiving payments.
There Two types of deferred annuities
Fixed and Equity
Indexed Annuities. Click Below.
Should You Buy an Annuity?
would depend on your individual needs now or some point in the future.
a CD holder, if you continually roll over your CD, you are subject to current
income tax. Plus, CDs are subject to the expensive and time-consuming probate
CDs vs Annuities
an annuity you can take advantage of deferred
growth. And like a CD, with a fixed CD-Type annuity you an choose annuity
deferral periods. Also, some annuities allow you to take a portion of your annuity
as income during the deferral period. But unlike CDs an annuity can avoid probate
Power of the Deferred Annuity
you have a pension/401k plan, an annuity can offer a safe place to harbor your
money. It continue to grow tax-deferred. Or, if you are ready for retirement,
you may want to choose guaranteed income that you can not out live.
you have an inheritance you want to invest, or money from the sale of a home or
business. You might consider a bonus annuity that could immediately increase your
balance as much as 10%.
Perhaps you want to start accumulating money for
retirement. A flexible premium deferred annuity allows deposits as little as $25
So whether you have millions to invest or as little as $25 per
month, there is an annuity designed to fit your needs.
Which Annuity is
Right for You?
If you are near retirement and/or wish to turn your 401(k),
IRA, or sale of a home into a secure, guaranteed income stream, an Immediate
Annuity might be right for you.
On the other hand, if you are still
saving for retirement and want to grow your money with the power
of tax-deferred compound interest, consider the following deferred annuities.
you are a CD buyer, consider a CD-Type annuity. Annuities not only provide a higher
return than CDs do, but the interest grows tax-deferred and most CD-Type annuities
have a surrender-free withdrawal provision, so unlike a CD, you can withdraw money
without an interest penalty. With CD rates at an all time low, and dropping, annuities
offer a strong and safe alternative.
By combining different annuity strategies
you can create customized solutions that meet your individual needs.
us help by providing you a no-obligation personalized
annuity quote based on your needs.
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