How annuities work
On a basic level, annuities are insurance products, purchased from a carrier, that are designed to help protect your retirement income from risks like market exposure or outliving your money.
Features of an Annuity
Index Crediting Strategy Options
Choice of strategies used to determine interest credited to contract based on index increases.
Annuity Contract Issued
Purchased in a single or series of premium payments.
Principal Protection
Contract guarantees principal protection from market volatility.
Guaranteed Rate
Fixed interest rate guaranteed annually.
Tax Deferral
Contract Value potential growth grows tax-deferred until money is withdrawn.
Income Options
Guaranteed lifetime income payments and increased payments for care-related
costs available.
Locked-In Growth
Potential interest credited to the contract cannot be lost, and annual growth will never be
less than zero.
Level of Liquidity
Penalty-free withdrawals available after first year.
