An annuity is an insurance product that can be used as part of your retirement strategy. With the investment in an annuity, your premium earns interest, the interest compounds, and the money that would have been paid in taxes earns interest.
With this tax-deferral and interest compounding, you may accumulate more money over a shorter period of time and consequently earn more.
An annuity allows all proceeds to go directly to your named beneficiary and may also help you avoid probate.
Types of annuities
Fixed – Fixed annuities offer preservation of premium with a minimum interest rate guarantee for a specified period, and the opportunity to generate a guaranteed lifetime income.
Fixed Index – Fixed index annuities offer preservation of premium with a minimum interest rate guarantee on fixed account money, the opportunity to generate a guaranteed lifetime income, and enhanced growth potential with stock market-linked indices.