Immediate Annuities, Fixed Annuities, and Index Annuities

 

In addition to insurance, we also offer our clients three types of annuities:

 

Immediate Annuities:

This is an annuity contract you can purchase with a single lump sum. The insurance company then pays you a guaranteed income that starts immediately. The income could be for a period of time or your whole life.

Fixed Annuities:

This annuity is similar to bank-issued CD’s, but the interest rates are higher in most cases. For current rates, call the Landeche Insurance Agency office.

Index Annuities:

While an index annuity is similar to a fixed annuity, the main difference is that the interest links to a stock index. However, you are not actually buying shares of stock when you buy an index annuity.

 

Immediate Annuity

You can purchase immediate annuities with a single lump-sum payment, which can provide a risk-free monthly income for the rest of your life. There is no stock market risk or risk of outliving your assets. No matter how long you live, the annuity will continue to pay monthly.  For this type of annuity, you can make the first benefit payment in one payment intervals after the date of purchase, which can be monthly or annual.

Fixed Annuity

This is the oldest form of annuity that many consider to be very safe because of the guaranteed earnings and principal. It provides a fixed amount you receive over a specified time frame or your entire life span. This annuity can offer you a consistent income source you can count on for the rest of your life. 

Index Annuity

This annuity is a variation of the fixed interest deferred annuity. Indexed annuity performance ties in to the performance of the market index connected to it. Fixed index annuities offer a fixed minimum interest rate, but they also allow for growth during market upswings. In market up trends, the account receives higher interest rates and value increases. In down markets, you will not lose principal because the contract provides a guaranteed minimum return.

You’ve worked hard throughout the years to save for retirement. As an insurance professional, I’ve provided my clients with retirement income planning guidance. Annuities can be an excellent way to provide for a secure retirement. If you’re looking for an insurance agency to help you plan for your future, we’re the insurance agency to trust. Contact us for more information.

 

 

 

Book an appointment

annuities, immediate annuities , fixed annuities , index annuities

Compare the Return

$107,297 Accumulated in a Tax-Deferred Annuity

$71,966 Accumulated in a Taxable Account

The Difference:$35,331