Why Consumers Are Thankful for Annuities
First of all, Annuity Alliance wants to wish everyone a very safe and Happy Thanksgiving. Secondly, why are a lot of people thankful for having an annuity?
Top 7 Reasons Consumers Are Thankful for Annuities
- Guaranteed Lifetime Income! An annuity will provide its client (you and/or even your spouse depending on the contract) with a revenue stream that you can never outlive. No other financial product can state that claim!
- Tax-Deferral! You can place money into an annuity to save for retirement without any limits on the amount you contribute to the annuity. The annuity is tax-free until you take a withdrawal.
- You can’t lose your initial premium! Once you place money into a fixed or fixed indexed annuity, that initial money is safe with no risk of loss. If the stock market crashes, your initial premium is still protected unlike any money placed in stocks that fluctuate up and down.
- Leave a legacy to your beneficiaries! An annuity can allow you to pass on its funds to a spouse or named beneficiary through a death benefit rider. Based on the contract, this money could be distributed as a stream of payments or a lump sum.
- Long-term care protection! If you cannot qualify for life insurance or long-term care (LTC) insurance, you can place money into an annuity to pay for unforeseen LTC costs. Some annuities even have a LTC benefit written into their contract.
- Better interest rates! Most annuities pay more than a traditional bank CD. Depending on the carrier and product, you also will know your interest percentage over the annuity term.
- Flexibility! With the number of insurance carriers and their annuity products, you have multiple options to fit your retirement strategy. Looking for short-term growth? A multi-year guaranty annuity (MYGA) is built for three to five years. Looking for long-term growth? A fixed or fixed indexed annuity (FIA) is built for three to 10 years with a locked percentage for the entire term.
During your family and friend gatherings to celebrate the Thanksgiving holiday, we hope you will use social distancing and take into consideration wearing masks around potential high-risk candidates.
If you are looking to place money into an annuity before the end of the year, please contact Annuity Alliance to connect with a licensed professional.