Coverage

Annuities

An annuity is a contract with an insurance company, often used to support savings goals and create a source of income later in life.

How it works

You pay a premium, either as a lump sum or over time. In return, the insurance company agrees to credit growth and may provide income payments, now or at a future date. Some annuities offer income for life.

Types we discuss

  • Fixed annuities, which credit a stated interest rate for a period of time.
  • Fixed indexed annuities, which credit interest based in part on an index, subject to caps or participation rates.

FutureReadyLegacy does not offer variable annuities or other securities products.

Things to consider

  • Access to your money. Many annuities have surrender charges if you withdraw too much too soon.
  • Taxes. Withdrawals before age 59 and a half may trigger taxes and penalties. Talk with a tax professional about your situation.
  • Guarantees. They depend on the claims-paying ability of the issuing insurer.
  • Inflation. A fixed income may buy less over time.

Questions to ask

  • How long are the surrender charges, and how much can I withdraw each year?
  • What is guaranteed, and for how long?
  • How would this fit with my other savings and my retirement timeline?

Talk with Alethe   See all coverage

This page is general educational information. It is not tax or legal advice and it isn’t a recommendation for any specific product. Features, costs and availability vary by carrier and state.