Annuities
“Build the pot, take your share, income flowing without care.”
Guaranteed Retirement Income with Insurance Protection
An annuity is a long‑term contract with an insurance company designed to provide guaranteed income in the future in exchange for premiums you pay now or over time. The insurer promises to make regular payments—often for life—helping protect you from outliving your savings in retirement. Annuities can serve as a safety net for retirement income planning, supplementing Social Security, pensions, or other savings.
This product is ideal for pre‑retirees and retirees who want predictable income, tax‑deferred growth, and protection against longevity risk. Key benefits include tax deferral on earnings, income options tailored to your goals, and customizable riders for death benefits or long‑term care.
Real‑world use cases: converting a lump sum into steady monthly income, protecting against outliving investment portfolios, and ensuring consistent cash flow in retirement.
Policy Details & Specifications
Policy Type: Retirement income contract (insurance annuity)
Term Length: Immediate (income begins quickly) or Deferred (income begins later)
Coverage Range: Payout amounts vary based on premium, contract, and payout option
Eligibility: Generally available to adults funding retirement planning
Riders: Death benefit riders, long‑term care riders, cost‑of‑living adjustments
Underwriting Type: No medical underwriting; qualification is based on financial suitability
Why Choose an Annuity
What makes it better: Provides a guaranteed income stream unlike most investment accounts. It solves longevity risk—the chance you’ll outlive your savings.
Not ideal for: individuals needing high liquidity, short‑term goals, or those who prefer market‑based growth without payout guarantees.
Supporting Content & Comparison
Annuities differ from life insurance: annuities address longevity risk, while life insurance protects against mortality risk upon death. Choosing the right annuity requires comparing fixed, variable, and indexed types, payout options, fees, and tax implications.
FAQs
1. What is an annuity?
A contract that pays income for a period or life in exchange for premiums.
2. When do payments begin?
Immediately or deferred to a future date.
3. Are annuity earnings taxed?
Yes—tax‑deferred until withdrawal.
4. Can I lose money?
Some types (e.g., variable) bear market risk; others guarantee principal.
5. Who should get an annuity?
Deferred for those with large sums of cash, those nearing or in retirement, and seeking guaranteed income.
