Annuities
Protection Benefits
Guaranteed* Income For Life
Annuities come with several benefits. One main advantage of guaranteed* income annuities is that they provide income for life. Fixed indexed annuities (or FIAs) are insurance contracts that guard against the risk of losing money in the market.
FIAs also offer the possibility of earning interest based on the performance of an index (or indexes) that you choose. Additionally, you have the option of allocating your money to a fixed-rate strategy that earns a guaranteed* interest rate. When the time is right, you can begin receiving income payments. However, if you delay the withdrawals, your income payments increase.
Options For Income For Life
An FIA has a few additional benefits that are worth considering. There are a number of optional protection benefits available. This is an excellent way to protect both your retirement assets and your income.
Accumulation
An FIA's accumulation period is around five to ten years. If you follow the terms of the contract, no surrender fee will apply. During the accumulation phase, your contract's interest credit will remain secure. It may also be possible to extend this phase even longer to increase earnings.
Receiving Your Money
An annuity payment can be received in two different ways. An annuitization payment, or an income withdrawal. Furthermore, different types of payments are taxed differently. Usually, the payments from annuitizations are made annually, and are partially tax-deferred. The annuity may be refunded in some cases. If you earn interest, the other part may be taxable. Alternatively, you could withdraw your income and pay tax on it. Consult a tax advisor before making this decision, however.
How Much You Can Withdraw
Fixed indexed annuities give you more control over your retirement income. Your money grows during the accumulation stage, and is available to you after this period. The contract value can provide you with a stream of income for your life, and perhaps longer (in the form of a death benefit for your beneficiaries). Annuity payouts are determined by the value of your contract when withdrawals begin. You'll also find a payout schedule in your contract.
Additional Benefits After Your Lifetime
An annuity is payable to a beneficiary in the event of your death. In addition, some types offer your loved ones a death benefit after your income payments are made. Your beneficiary could receive this benefit in the form of regular payments, or as one lump sum.
Access Your Money When You Need To
FIAs are an attractive option to many retirees due to their flexibility. A stock market crash won’t put you at risk. Instead, the issuing insurance company bears the risk. An FIA allows you to secure your retirement income. Additionally, your loved ones could receive a death benefit without going through probate court. Our team can walk you through your different options for guaranteed* income for life.
