Originally created by the National Association for Fixed Annuities (NAFA)

Fixed annuities offer a unique and attractive blend of safety, growth potential, tax advantages and lifetime income – which may make them a good fit for many clients. Appreciating the true power and capabilities of fixed annuities requires understanding the key terms that are used to define them.

Fixed Annuities:

1. Are insurance products offered by major insurance carriers.
2. Are contracts with an insurance company purchased using a premium.
3. Earn interest based on the insurance company’s earnings or the positive performance of a market index.
4. Have no downside market risk because they do not directly participate in any market.
5. Provide tax-deferred growth by deferring taxes until such time when withdrawals are made.
6. Are one of the two types of annuity products available: fixed or variable.
7. Include fixed indexed annuities, which offer the same insurance guarantees as other fixed annuities but credit interest based on the performance of a market index.
8. Provide guarantees* for individuals interested in creating a predictable income stream in retirement they can’t outlive.
9. Provide principal protection from market volatility with a zero percent interest floor and minimum interest guarantee.
10. Are among the highest-rated financial products for consumer satisfaction, with complaints filed on less than one-half of one percent of fixed annuities sold in the last 15 years!1

1 April 2017 Annuity Perspectives, compiled by Dr. Jack Marrion, President Advantage Compendium.

* Annuity guarantees are backed by the claims-paying ability of the issuing insurance

If you would like to talk to a financial professional about annuities, please contact Annuity Alliance!