Tax-Deferred Fixed Annuity
What is an annuity? An annuity is simply a contract between
you and an insurance company. It is guaranteed by the full faith
and credit of the underlying issuing company's ability to repay
premiums. There are three important reasons for the increased
popularity of annuities:
-
Competitive Interest
Rates. Historically, Annuities have paid interest rates
one, two , or three percent higher than other similar investments.
-
Safety.
Fixed Annuities have a record of safety due to the regulation and
supervision by state insurance departments and the legal reserve
system.
-
Tax Advantage.
Annuities offer a unique tax advantage. This advantage is the
deferral of current tax on interest earnings. Annuities are
most often purchased for this tax-deferred feature or because people
need a guaranteed income stream that can never be outlived.
With most other investments you pay taxes each year on your interest
earnings whether the money is left to accumulate or taken out as
income. With Annuities, interest earnings left to accumulate
are not taxed until taken out, so the Annuity values can accumulate
much faster.
Annuity Benefits:
- Historically, Annuities have paid higher interest rates
when compared to similar investments.
- Annuity values may grow faster than other investments
due to the tax-deferred advantage.
- At death, all funds will be transferred--without Probate--
to a named beneficiary. Bypassing the Probate process
means no delay and no added legal or court expense.
- Complete privacy is assured.
- There are no health or underwriting questions.
- Annuities can provide a guaranteed income that can
never be outlived.
To have a
qualified representative contact you with additional
information, please
click here.
Please note that this insurance product
is:
- Not a deposit
- Not FDIC-insured
- Not insured by any federal
government agency
- Not guaranteed by the bank
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