Annuities can be valuable retirement-planning tools, but they are not one-size-fits-all products.
Before purchasing an annuity, it’s important to understand:
Our job is to help you understand the details before you make a decision.
An annuity is an insurance contract that can be used as part of a long-term retirement strategy.
Depending on the type of annuity, you may contribute money to an insurance company and receive benefits such as interest accumulation, tax-deferred growth, or income payments in the future.
Different annuities are designed for different purposes.
That’s why the first step isn’t simply “Which annuity should I buy?”
The better question is:
At Lineage Insurance Solutions, you can explore several types of annuity strategies.
Grow your savings with a guaranteed interest rate while protecting your principal. Enjoy predictable growth and greater financial stability without the ups and downs of the market.
Potentially grow your savings based on market index performance while protecting your principal from direct market losses. Enjoy growth opportunities with greater financial security.
Convert a lump sum into a dependable income stream that can begin soon after purchase. Enjoy predictable payments designed to provide greater financial confidence in retirement.
Build your savings over time with tax-deferred growth and the flexibility to start receiving income when you need it. A smart option for long-term retirement planning.
An annuity is an insurance contract that can be used for long-term financial and retirement planning. Depending on the contract, it may provide interest accumulation, tax-deferred growth, and options for receiving income.
An annuity isn't necessarily right for everyone. Whether it is appropriate depends on your retirement goals, financial situation, time horizon, liquidity needs, and the specific contract.
People may purchase annuities to pursue retirement income, accumulate money on a tax-deferred basis, obtain certain contractual guarantees, or reduce direct exposure to market volatility.
Minimum premiums vary by insurance company and product. The appropriate amount also depends on your financial situation and how the annuity fits into your overall retirement strategy.
Depending on the product and your circumstances, annuities may be purchased using different types of funds, including certain retirement account assets or non-retirement savings. The tax and financial implications can vary.
The answer depends on the type of annuity and the contract. Some annuities have contractual protection features, while others involve market investment risk. Withdrawals, surrender charges, fees, and other provisions can also affect the amount you receive.
Annuities are insurance products, and their contractual guarantees depend on the financial strength and claims-paying ability of the issuing insurance company. They are not FDIC-insured bank deposits.
Many annuities allow withdrawals, but the amount and timing may be restricted by the contract. Surrender charges or other consequences may apply if you withdraw funds beyond permitted amounts.
Annuities are insurance products, and their contractual guarantees depend on the financial strength and claims-paying ability of the issuing insurance company. They are not FDIC-insured bank deposits.
Annuity taxation depends on factors such as the type of annuity, how it was purchased, ownership, and the nature of the withdrawal. Many annuities provide tax-deferred accumulation, but taxes may apply when funds are withdrawn.
A fixed annuity generally credits interest according to a fixed-rate structure described in the contract. A fixed indexed annuity may credit interest based partly on the performance of an external market index, subject to the contract's crediting method and limitations.
Certain annuity contracts can provide income for life, depending on the income option selected and the contract's terms.
Yes. Certain annuities can be structured to provide retirement income and may be used alongside Social Security, pensions, investment accounts, and other sources of retirement income.
No. Annuities are insurance products rather than bank deposits and are not FDIC-insured. Guarantees depend on the claims-paying ability of the issuing insurance company.
Consider the interest-crediting method, guarantees, surrender period, withdrawal provisions, fees, riders, liquidity, income options, tax considerations, and financial strength of the issuing insurance company.
There isn't one annuity that is right for everyone. The appropriate product depends on your goals, age, financial situation, retirement timeline, liquidity requirements, risk considerations, and income needs.
Not necessarily. An annuity should be evaluated as one component of your overall retirement strategy. Diversification and liquidity should be considered when deciding how much of your assets, if any, should be allocated to an annuity.
Yes. Comparing contract terms, interest-crediting methods, guarantees, surrender periods, income options, costs, and other features can help you make a more informed decision.
Have questions about annuities? Talk with our team to explore your options and understand what may fit your retirement goals.
