What is an Annuity?
Annuities come in various shapes and sizes and are designed to help you prepare for retirement. An annuity is a contract between you and an insurance company. You pay the insurance company premium and in exchange, you get the benefits only an annuity can provide.
The first basic classification is between deferred and immediate annuities. The former accumulates money like a savings account for later withdrawal, whereas the later pays back an initial lump-sum investment plus interest over a period of many years. The second basic difference between annuities is how they accumulate and credit interest, either as fixed, variable, or indexed products.
Why Consider an Annuity?
Annuities can be a valuable addition to your overall retirement strategy because they offer tax-deferred growth while you're saving for retirement, and dependable income after you retire - in some cases, for as long as you live.
Many annuities provide principal protection, and some can be customized to provide inflation protection, lifetime income, an enhanced death benefit, and other options either built in or optional and available for an additional cost. Additionally, annuities can help to transfer wealth to your beneficiaries.
The National Association for Fixed Annuities (NAFA) is an informative site and is exclusively dedicated to promoting the awareness and understanding of fixed income and deferred annuities through the education of policymakers, journalists, consumers, and the industry about the benefits of fixed annuities.
Click link to watch short, educational videos for consumers from NAFA - nafa.com
Click link to learn about the Myths and Facts surrounding Annuities offered by Allianz Life Insurance Company - allianzlife.com
Give us a call for more information on what is available and what type of annuity may be beneficial to you. We will be in touch with you soon to gather information and discuss what may be appropriate for your situation.