Fixed Annuity Guide - Annuities 101

Typical Fixed Annuity Features - (vary with each individual product):

All annuities have three primary advantages: Tax Deferral, Avoidance of Probate, and a Guaranteed Income (optional) for a fixed period of time, or income for life. More specific reasons to invest in fixed and immediate annuities:

• 1-10 Year Term - Fixed annuities are available for short, medium, or long terms. Longer terms yield higher rates.


• Single Premium - Fixed annuities involve a single premium, i.e. they require only one payment.


• Guaranteed Rate — The reason why fixed annuities are so popular, is because they carry a fixed interest rate for the number of years the contract states. This translates into a guaranteed receipt for people who need regular income.


• Very Low Risk — Money can only be lost if the insurance company becomes insolvent and your investment exceeds Annuity State Guaranty Limits.


• Retirement Income — Fixed annuities yield a monthly fixed income, which is invaluable for retirees. Secure monthly checks can keep your household expenses sorted, even after you retire.


• 3%-10% Return — Solid returns for essentially no-risk investment. Better than CDs, especially at longer terms.


• Lifetime Income — An optional lifetime provision guarantees paychecks for life. No worries about outliving your retirement savings.


• Life Insurance — Fixed annuities are like life insurance policies, for they come with the provision of death benefit for the remaining family members.


• Unlimited Contributions — There is no limit on the amount you wish to invest in a fixed annuity, nor is there a restriction on how many policies you should or can own. Choose your amounts and leave behind a healthy inheritance for your family.


• Inheritance — Bequeath money to loved ones probate-free. Avoid estate/death taxes.


• Inflation Hedge — Fixed annuities are good inflation hedges as the amount you receive has some amount of interest included in it.


• Tax-Free Gifts — Gift up to $10,000 per individual, per year, tax-free. Gift money to an unlimited number of individuals.