Many people don’t fully understand the benefits to having an annuity. Here are the major advantages to owning an annuity:

1. ✦  Provide income for as long as you live, 
   

2. ✦  Unlimited contributions,
   

3. ✦  Tax deferred,
   

4. ✦  Principal protection, and
   

5. ✦  Avoid probate.
   

Immediate Annuities – these type of annuities provide income starting within 30 days (up to a year) typically funded by a single premium.  These are a variety of payout options based on a single life or joint lives or based on a period of years (usually 5-20 yrs) or any combination including installment refund (which pays to beneficiaries an unused amount of annuitant dies).  Taxed Non-qualified immediate annuities have an exclusion ratio which determines the amount of each payment that is taxable.

Fixed Deferred Annuities – these come in a variety of forms including a fixed interest rate guaranteed for a period of years also called MYGAs (multi-year guaranteed annuities).  For clients with a longer term time horizon (10+ yrs) that need to supplement retirement Also bonus rate annuities offer a higher first year rate and then a minimum or higher renewal rate thereafter.  Premium bonuses and guaranteed income riders are competitive features that offer mass appeal.  Ability to convert to lifetime income.

Index Annuities – similar to Fixed Deferred Annuities but instead of a fixed interest rate, interest is credited based on the movements of a well-known stock market index.  Minimum interest rate guarantees and upside potential, when coupled with lifetime income riders and premium bonuses make these very attractive in today’s volatile stock market.  A variety of index options and buckets give the client choices on how their premium is allocated.  Ability to convert to lifetime income.