Click Here for More Information
Search for Providers
Site Search
ATTENTION AGENTS!
Click the button
for your own personalized
...brought to you by Client First
Click the button
for your own personalized
...brought to you by Client First
Already Registered?
Products | Individual / Family - Annuities
There are 2 basic Annuity product lines, Deferred Annuities and Immediate Annuities.
Immediate Annuity: a lump sum is deposited with an Insurance company. The Annuitant (depositor) then receives a series of monthly or annual payments. The payments may be guaranteed for a specific period of time (such as 5 years, 10 years or 20 years) or the payment may be guaranteed for the lifetime of the Annuitant. The source of the funds could be a rollover from a 401K, IRA or 403(b), an exchange from a Deferred Annuity or cash from a Certificate of Deposit or a Savings Account.
Deferred Annuity: a lump sum (or series of payments) is deposited with an Insurance company. The interest earned is tax deferred, no income tax is due until money is withdrawn from the annuity. The Annuitant may take a lump sum withdrawal or a series if withdrawals at a future time. This is a surrender charge for money withdrawn in the early years. The surrender charge is usually a decreasing amount over the first 5 to 15 years, depending on the policy purchased.
Types of Deferred Annuities:
There are 2 basic Annuity product lines, Deferred Annuities and Immediate Annuities.
Immediate Annuity: a lump sum is deposited with an Insurance company. The Annuitant (depositor) then receives a series of monthly or annual payments. The payments may be guaranteed for a specific period of time (such as 5 years, 10 years or 20 years) or the payment may be guaranteed for the lifetime of the Annuitant. The source of the funds could be a rollover from a 401K, IRA or 403(b), an exchange from a Deferred Annuity or cash from a Certificate of Deposit or a Savings Account.
Deferred Annuity: a lump sum (or series of payments) is deposited with an Insurance company. The interest earned is tax deferred, no income tax is due until money is withdrawn from the annuity. The Annuitant may take a lump sum withdrawal or a series if withdrawals at a future time. This is a surrender charge for money withdrawn in the early years. The surrender charge is usually a decreasing amount over the first 5 to 15 years, depending on the policy purchased.
Types of Deferred Annuities:
- Fixed Annuities - the cash value is guaranteed and the current interest rate credited is usually declared by the Insurance company. The current interest rate could be guaranteed for 1 year, 5 years, 7 years or any other period of years. There is also a minimum guaranteed interest rate for the life of the policy.
- Fixed Indexed Annuities - also known as Equity Indexed Annuities. They are just like the fixed annuities described above except that the actual interest rate credited is determined by the performance of an Index, such as the Standard & Poors 500, the Dow Jones, the NASDAQ and others. The cash value is guaranteed because the funds are never actually invested in the stock market.
- Variable Annuities - the Annuitant selects sub-accounts which are invested in the stock market. The rate of return earned is based on the performance of the sub-accounts chosen. The cash value is generally not guaranteed as it is in a fixed annuity. Some Variable Annuities now have some riders which guarantee certain death benefits and withdrawal amounts.