An Annuity to Safeguard Your Future

When it comes to planning your financial future, annuities provide a number of valuable benefits. You may save for your retirement, while enjoying tax-deferred growth and the opportunity to receive a stream of income for as long as you live (or for your life and that of another).

Your money grows faster than in a currently taxed alternative paying the same rate. Additionally, since taxes are not owed until you begin receiving interest income, you control when you pay taxes.

Furthermore, an annuity’s estate-planning benefit ensures that your assets are protected and distributed to your beneficiaries in the way you intended. It is comforting to know you have provided for your loved ones.

Guaranteed Income For Life

A variety of guaranteed income options is available, including an income that you cannot outlive. You may choose from among scheduled payments guaranteed to continue for a lifetime, income payments for a period of time or even a one-time payment. This guaranteed income for life can be enhanced with optional living benefit riders, or through medical underwriting. Annuity payments can also increase every year to offset inflation. Income payment guarantees are backed by the claims-paying ability of the issuing life insurance company.

Estate-Planning Benefit

Upon the death of the owner, the issuing insurance company guarantees that the legally designated beneficiary will receive the current contract value at the time of distribution, avoiding the delays, expense and publicity of probate.

Tax Benefits

Annuities earn interest that is tax-deferred until withdrawn or the annuity policy matures as a death benefit. Moreover, the annuity policy owner can control when taxes are paid by controlling when withdrawals are made, or annuity income is selected.

Principal Protection

A fixed annuity or index annuity is not subject to stock market or bond market volatility. What this means to you is that the annuity policy value does not fluctuate up and down every day the markets are open. Some annuity policies have additional principal protection in the form of a Return of Premium (ROP) benefit (this may be an optional benefit, or a standard annuity feature, depending on the specific annuity policy). An ROP rider guarantees that the amount paid on surrender of the contract cannot be less than the original premium paid, less any premium tax deducted at issue, and less any withdrawals taken since the contract was issued.

Optional Enhancements

An annuity can be enhanced with riders, or optional features. The two most common optional features fall into two broad categories:

• Enhanced Living Benefits
• Enhanced Death Benefits

Are you worried about outliving your money? It is possible, even if you have a sizeable nest egg. Here’s why:

Supercentenarians

The purchase of an annuity policy is a serious decision, with significant financial implications for you, and your beneficiaries. That is why it is always a good idea to use a professional insurance agent when purchasing an annuity policy. The best choice is an insurance agent that has earned the professional designation, Chartered Life Underwriter.