If you’re like many people, you have imagined what your ideal retirement would look like. Maybe it involves travel to new and exciting destinations. Perhaps you want to fill your time with children, grandchildren and even great-grandchildren!
You deserve to live your dream retirement, but are you prepared? Many consumers are not adequately prepared financially for some of the key retirement risks we face.
Fixed annuity basics
Building a foundation
Fixed annuities may be a solution to help address your retirement concerns but more importantly reach your retirement goals. Fixed annuities have the following benefits:
Tax-deferred growth allows your money to grow faster because you earn interest on dollars that would otherwise be paid in taxes. Your premium earns interest, the interest compounds within the contract and the money you would have paid in taxes earns interest.
Under current law, annuities grow tax-deferred. An annuity is not required for tax-deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase.
May Avoid Probate
By naming a beneficiary, you may minimize the delays, expense and publicity often associated with probate. Your designated beneficiary receives death proceeds in either a lump sum or a series of payments.
Please consult with and rely on your own legal or tax advisor.
A good Insurance Carrier will pay out a death benefit which equals the Accumulation Value upon the death of the annuitant or an owner. The death benefit is payable upon the death of the first owner, unless the sole beneficiary is the owner’s spouse and he or she elects to continue this contract under spousal continuance. If there are joint annuitants and an annuitant who is not also the contract owner dies, the
death benefit will be paid on the death of the second annuitant. A death benefit is not available if an annuity payout option has been elected.
Through your election of an annuity payout option, A good Insurance Carrier can provide you with a guaranteed income stream with the purchase of your tax-deferred annuity. You have the ability to choose from several different annuity payout options, including life or a specified period. Once a payout option is elected it cannot be changed and all other rights and benefits under the annuity end.
See product details sheet for more information regarding annuity payout options.
Source: North American Company