What is the Definition of an Annuity?

An annuity is a contract between you and an insurance company that requires the insurer to make payments to you, either immediately or in the future.

What Are The Types of Annuities?

Variable Annuities Are registered securities where the contract can gain and lose value depending on the accounts invested in the market. There are fees in a variable annuity that can range from 1% - 3% per year. Fixed Annuities Are not a security and cannot lose value regardless of market conditions. Depending on the carrier, there are usually no fees in a fixed annuity.

What Are The Most Common Types of Fixed Annuities?

Single Premium Immediate Annuity (SPIA) Permanently converts a lump sum of money into stream of payments for a specific amount of time.
Multi-year guaranteed annuity (MYGA) Offers guaranteed fixed-rate of CD annuity which provides a predetermined guaranteed interest rate for a set period. typically 3-10 years.
Fixed Indexed annuity (FIA) Offers guaranteed fixed rates, income rider options and market gain potential without risk of loss.

Are Fixed Annuities a Safe Investment?

YES! Protected by the financial strength of carrier. Protected on a State Level by the State Guaranty Association which protects at least $250,000 per customer per company.