What is an Annuity?Annuities are contractually-executed, relatively low-risk investment products; the insured (usually, an individual) pays a life insurance company a lump-sum premium at the start of the contract. That money is to be paid back to the insured in fixed, incremental amounts, over some future time period (predetermined by the insured). The insurer invests the premium; the resulting profit/return on investment fund the payments received by the insured, and, compensate the insurer.
Conventional annuity contracts provide a predictable, guaranteed stream of future income (e.g., for retirement) until the death(s) of the beneficiaries(s) named in the contract, or, until a future termination date – whichever occurs first. These financial instruments have been used to accumulate funds and provide significant and sudden increases in personal income (via future, lump-sum withdrawals), all while legally avoiding the taxes (e.g., income-, capital gains-, estate-) that would otherwise be assessed on them. Fixed Indexed Annuity VS. MYGA(Multi-year guaranteed annuity) A Fixed Indexed Annuity gives you a predictable way to build your future retirement income base for a steady stream of lifetime income- without the risk of actually participating in the market. An FIA gives you protection from market losses and growth potential based on a market index (like the S&P 500®) — without the risk of actually participating in the market. When it comes to your hard-earned retirement savings, does the thought of letting your money ride with the ups and downs of the stock market give you an uneasy feeling? But you don't want to miss out on the sharing in some of the potential gains? A more conservative solution, called a fixed indexed annuity (FIA) may be right for you. A Multi-Year Guaranteed Annuity(MYGA) offers you the opportunity to:
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Annuities provide guaranteed income for life
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