Industry

Frequently Asked Questions





How soon will you need a regular stream of income payments from the annuity?

1. If income is needed within the first year, consider an immediate annuity.

2. If income is needed in the future from one year to 10 years consider a fixed or fixed index annuity that offers this specific benefit.

3. If income is needed in the future from 10 years plus consider a fixed or fixed index annuity that offers this specific benefit.

More forms may be required depending on the state that the purchaser lives in, whether they are replacing another annuity or investment with the current annuity purchase, and/or whether the monies that are being used to purchase the annuity are coming from a qualified plan (just to name a few variables)..

What is an annuity?
To put it simply, an annuity is a contract between an individual (called the annuity owner) and an insurance company for a guaranteed interest-bearing policy with guaranteed annuity income options. (Please visit the Learning Center for more information.)

What is the major advantage of annuities?
All annuity dollars are able to accumulate interest completely tax deferred. This means an individual can delay taxation of growth until the money is needed and therefore earn triple interest — interest on the principal, interest on the interest and interest on the money that normally would be paid in taxes. (Please visit the Learning Center for more information.)

Is an annuity safe?
Yes — with annuities, your principal is 100% safe and you are guaranteed to earn at least a minimum interest rate. This guaranteed safety is possible because each insurance company issuing annuities is supervised and regulated by each state’s insurance department; plus, they are backed by a Legal Reserve System and a Guaranty Fund. (Please visit the Learning Center for more information.)

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