Annuities

An annuity is a unique financial vehicle designed to help people accumulate money for their retirement and/or turn a lump sum of money into a guaranteed stream of income for life. Guarantees are based on the claims-paying ability of the issuing insurance company.

• Fixed Deferred Annuities: A Fixed Deferred Annuity is a product that is designed to help you accumulate funds for your retirement. The money in your annuity earns a fixed rate of interest and your money accumulates on a tax-deferred basis, meaning you do not pay taxes on your earnings until you actually withdraw them from your policy. Annuities are long-term retirement savings vehicles. Early withdraws maybe subject to early withdraw charges. Distributions are subject to income taxes and if made before 59 ½ a 10% federal income tax penalty may also apply.
• Variable Deferred Annuities: A Variable Deferred Annuity offers the advantage of tax deferral and can be used to accumulate money for retirement. The policy’s accumulated value – and sometimes the amount of monthly annuity benefit payments – fluctuates with the performance of your investment account. There are fees, expenses and risks associated with the contract. Please be aware than assets allocated to the investment divisions are subject to market risks and will fluctuate in value.
• Fixed Immediate Annuities:A Fixed Immediate Annuity pays a guaranteed rate of interest, resulting in a guaranteed stream of income where payments begin immediately. Immediate annuities are generally bought with one lump sum payment, which is then "immediately" converted into a series of scheduled payments.