People often ask…

What Are The Benefits of An Annuity?

The answer is MANY, especially for retirees!

Choules Financial logo

One of these key benefits is the option of a guaranteed lifetime income, given via a fixed index annuity (FIA) contract with an insurance company. First, you put money into the annuity. Simultaneously, you enter into an agreement with the insurance company. In this agreement, the insurance company states they will take that money and in return, provide you with a set income payment, over time. Usually, you receive your money at age 60 or later. However, if you wait longer to get your money, the income payments may be bigger. Also, remember, the principal value of your annuity is safe by the insurance company.

annuities for dummies
One Advantage

Income For Your Lifetime

Using a fixed index annuity (FIA), you can set up ongoing fixed income payments for yourself. For example, this might occur annually or monthly. Additionally, some annuities also have options and benefits that can help keep your income increasing with rising costs. For instance, an income rider may allow you to get increases in your payment amounts over time. This allows retirees to stay on top of rising medical costs, living expenses, or inflation

For clarification, income riders do have some restrictions. So, make sure you learn and understand all the details about benefits and costs. Devin Choules and his team are happy to go over this with you and help you make the right choice for yourself. We will answer all your questions, especially “what are the benefits of an annuity?”

Also, keep in mind that some withdrawal may affect taxes. For example, you may create additional tax liability if you try to withdraw retirement money prior to age 59 1/2. However, if you work with someone who knows the industry, you may learn strategies to avoid this.

Money There,

When You Need It

With all the flexibility and options available with annuities, its no wonder people chose them in retirement. When the market crashes, the insurance company has the risk, not you. In addition, you can secure your retirement future with products such as an FIA. And, once you’ve passed on, your beneficiaries may be able to receive a death benefit without probate.

annuity rates 2021

The Flexibility of An Annuity

Period of Time

Usually, the growth period of an FIA is somewhere greater than 5 years. If you follow the terms in your contract, you won't pay any surrender charges. Your interest credit on your annuity contract is also safe in this timeframe. One choice you have is to make the accumulation phase longer. It is possible to increase your interest rate with this method. Reach out to us to learn more about the options you have.

Amount of Money You Can Get

Retirement income has options with an FIA. In the growth stage, money is accumulating. Once this phase is over, though, you can take an income from your FIA. The details in the contract specify the schedule of payments. Be sure to work with our office to learn "what are the benefits of an annuity?" in your specific case.

When You Get Your Money

With a fixed index annuity, you can select to be paid annually, or, withdraw income. Both choices have tax implications as well as benefits. Also, you may decide to hold off on income from your annuity to allow additional growth. Make sure to attend one of our events to learn more. Of course, consult with a tax advisor if you have specific tax questions.

What to learn more about the benefits of an annuity?

We would love to teach you. Come join us at one of our seminars.
Or, contact us to schedule an appointment.
buying an annuity

Benefits Beyond Your Life

After you pass away, FIA’s can give you the option to bequeath your annuity value. Certain types of annuities will even all a death benefit to your loved one. Even after income payments, your FIA may still offer this benefit. For example, you may want a policy that allows your spouse to get money monthly as an income source. Or, you may choose a lump sum payment. Indeed, an FIA is a good fit for more than just retirement income reasons.

annuity definition
Scroll to Top
Choules Financial logo

LET'S GET SOCIAL

CONNECT WITH US