Annuities

Fixed Annuities are long-term investment vehicles designed for retirement purposes.  Gains from tax-deferred investments are taxable as ordinary income upon withdrawl. Guarantees are based on the claims paying ability of the issuing company. Withdrawls made prior to age 59^1/2 are subject to 10% IRS penalty tax and surrender charges may apply.

Riders are additional gurantee options that are available to an annuity or life insurance contract holder.  While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing.  Guarantees are based on the claims paying ability of the issuing insurance company.

A life annuity is an insurance product where a financial institution such as a life insurance company — makes a series of future payments to a buyer in exchange for the immediate payment of a lump sum (single-payment annuity) or a series of regular payments (regular-payment annuity), prior to the onset of the annuity.

The payment stream from the issuer to the buyer has an unknown duration based principally upon the date of death of the buyer. At this point the contract will terminate and the remainder of the fund accumulated forfeited unless there are other buyers or beneficiaries in the contract. Thus a life annuity is a form of insurance whereby the uncertainty of an individual's lifespan is transferred from the individual to the insurer, which reduces its own uncertainty by pooling many clients.

If you would like to learn more, give us a call.