Annuities
Protection Benefits
Guaranteed Income For Retirement
When planning for retirement, it is a priority to balance reward and risk, such as protecting your nest egg and developing growth. Because of this, fixed indexed annuities (FIAs) might be an option for guaranteed* income for retirement.
FIA Key Benefits At A Glance
- Guaranteed* income for retirement
- Tax advantages for retirement income
- Offer tax-deferred growth
- No contribution limits
- Protects against the risk of losing money in the market
- Option of earning interest based on index performance
- Death benefit. May help provide for your loved ones should you pass before annuity payments begin
Income Options Throughout Your Lifetime
Fixed index annuities offer a few additional benefits. In addition to the guaranteed* income for retirement, there are also protection options available. With an FIA, the insurer assumes the risks. So your retirement earnings are protected. These benefits are discussed in further detail below.
The value of an FIA increases over five or ten years. If you follow the contract, you will not be charged a surrender fee. The interest credit under your contract will remain secure during the accumulation phase. It is also possible to extend the accumulation phase, which will increase earnings.
A fixed index annuity allows you to take control of your retirement income. Your money grows when you are in the accumulation stage. Your income payments will be available once this stage is over. The contract value could provide you with guaranteed* income for retirement. You are paid based on the contract value as withdrawals are made. Your contract details the payout schedule.
Generally, annuities are paid out through annuitization or income withdrawal. Taxes apply to different types of payments. A portion of annuities is tax-free. And, they are typically paid out each year. There are also some annuities that are refundable. Taxes may be due on the other part if you earn interest. As an alternative, you can withdraw your income and pay taxes.
When you pass away, a fixed annuity is paid to your beneficiary. Also, some types provide a death benefit after income payments are made. A lump sum may also be provided to beneficiaries. Fixed index products may be ideal for those who do not expect to receive annuity income.
Key reasons why some retirees prefer FIAs are their flexible options. FIAs do not expose you to stock market falls. The insurance company bears that risk. An FIA helps you prepare for retirement by providing you with retirement protection. You can also distribute a death benefit to your loved ones without going through probate court.
A Look At The Big Picture
FIAs offer tax benefits and the potential for growth and protection, in your retirement strategy. We can help you understand your options for guaranteed retirement income. Contact us today.
