Annuities

Immediate Annuities

Immediate Annuities are normally purchased with a single premium payment. Annuity payments to the contract owner usually begin one period (monthly, annual, ect.) after the contract is issued. Popular payment periods include:

  1. Life Only: Regular payments are made for as long as the annuitant lives. When the annuitant's life ends, payments cease and no refund is made, even if the contract owner has not yet recovered the initial principal.

Equity-Indexed Annuities

Equity-Indexed Annuities combine a guaranteed minimum interest rate, with a potential for greater growth linked to a specific equities market index such as the Standard & Poor's 500 index. If the chosen index rises sufficiently during a specific period, a greater interest rate is credited to the contract owner's account for that period. This type of annuity can also be purchased with a single lump sum of cash, with installment payments over time, or with flexible payments.

Fixed Annuities

Fixed Annuities - The issuing life insurance company will guarantee a certain rate of interest, for a specified period of time. This type of annuity can be purchased with a single lump sum of cash, with installment payments over time, or with flexible payments.

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