Protection Benefits

Guaranteed* Income Annuity

Annuities offer a variety of benefits. Income for life is one of the key benefits of a guaranteed* income annuity. A fixed index annuity can provide this.  It is a contract between you and an insurance company.  You can convert a portion of your retirement money into lifetime regular payments. To begin, you allocate funds for the annuity and allow those funds to accumulate.  Once you’re 60 years old, you can arrange for installments to begin. Delaying withdrawals, however, results in larger income payments.

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Flexible Options

In addition to the benefits of fixed index annuities, there are a few other advantages to consider. You will be able to choose from a range of guarantees and optional protection benefits. The insurance company that issued the FIA assumes the risk. It is a way to protect your retirement assets, income, and beneficiaries. 

It is typical for a fixed index annuity (FIA) to grow over 5 to 10 years. As long as you follow contract terms, there will be no surrender fee. In the accumulation phase, your contract’s interest credit will remain secure. The accumulation phase can also be extended to increase profits. 

A fixed index annuity allows you to control your retirement income.  The accumulation stage is when your money grows. After the waiting period ends, you’ll be able to receive your income payments without any extra fees. You can receive the contract value as a stream of income for the rest of your life. Your payout is determined by the value of your annuity contract at the time you begin withdrawing funds. The payout schedule is also outlined in your contract.

Annuity payments can be received in one of two ways. Annuitization payments or income withdrawals. Each type of payment is taxed differently. Annuitization payments are paid annually. They may also be partially tax-free. In some cases, you may receive a refund of what you paid for the annuity. You may be taxed on the other part if you earn interest. Alternatively, you can withdraw your income and pay taxes then. Before you make your choice, talk to a tax advisor. Please contact us with any questions you have regarding a guaranteed lifetime income annuity.

Benefits After Your Lifetime

In the event you pass away, your beneficiary will receive the value of the fixed annuity. After income payments, some types also provide a death benefit to your loved ones. People who do not plan to access income from their annuities can choose a fixed index product.

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Your Money When You Need It

FIAs appeal to retirees because of their flexibility and options. You don’t carry the risk in the event of a stock market crash. The insurance company does instead. Due to their protection benefits, FIAs allow you to secure your future retirement. In addition, your loved ones can receive your death benefit without going through probate court. We can help you determine if a guaranteed* lifetime income annuity is right for you.

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