|
If you are a conservative investor or saver, but want higher yields than banks currently offer, one alternative is a Fixed Deferred Annuity.
There are other benefits that the annuity offers:
| Questions |
CD |
Annuity |
Will this product provide safety of principal?1
|
Yes |
Yes |
Do I have access to principal? (subject to surrender charges)2
|
Yes |
Yes |
Does the entire principal get invested unreduced by commissions?
|
Yes |
Yes |
Will the product provide tax-deferred growth?3
|
No |
Yes |
Does the product provide flexible contributions?
|
No |
Yes |
| Will the product avoid the costs and delays associated with probate?4 |
No |
Yes |
Can earnings on the product be automatically reinvested without taxes?
|
No |
Yes |
| Can the product provide guaranteed lifetime income? |
No |
Yes |
| Can the product provide social security advantages by reducing taxable income that would make social security payments taxable? |
No |
Yes |
| Can the product provide potentially higher yields? |
No |
Yes |
Does the product waive surrender charges upon death?
|
No |
Yes |
Does the product waive surrender charges for terminal illness?
|
No |
Yes |
Does the product waive surrender charges for confinement in a long term care facility?
|
No |
Yes |
| Does the product provide for loans? |
No |
Yes |
Does the product offer any protection from creditors and predators?
|
No |
Yes |
An annuity is generally a long term savings product, although some annuities are designed for shorter accumulation periods, even as short as one or two years. Some annuities have a Return of Premium feature, either built into the policy, or as an option rider. These policies may be surrendered at any time without losing any principal to surrender charges.
Please read your policy for details.
If you have a question, call us today at (800) 680-5596, or click on the Contact link and send us an email. We would love to hear from you.
Notes
- Contingent on the claims paying ability of the insurance company. CDs that are insured by FDIC are generally limited to $250,000.
- Penalties may apply on early withdrawals. Surrender charges may apply during the surrender charge period. Some annuities offer a free withdrawal option, either 10% of premium per year or 10% of the annuity value per year. A 10% penalty tax may apply to earnings withdrawn from an annuity prior to age 59 ½, although this penalty may be avoided under IRC Section 72. Please ask us how!
- Interest on accumulated values is deferred until withdrawn. Principal is always returned tax-free.
- A named beneficiary generally avoids probate, but there may be some state variances. Please consult with your legal counsel for specific advice.
|
Copyright © 2012 Life Solutions, Inc. All rights reserved.
Products not available in all states. Product provisions and features may vary from state to state. The agents of Life Solutions are not licensed to sell insurance in all 50 states. To find out if an agent is licensed in your state, please call (800) 680-5596.
We are proud supporters of the National Association of Conservative Life Underwriters.
Safe Money 
