Protection Benefits

Protected Lifetime Income

You could potentially set yourself up for protected lifetime income with a fixed indexed annuity. A fixed indexed annuity, or FIA, is a contract with an insurance company. First, you deposit money into the annuity. Then, the FIA converts the value into set payments, which happen over time. Typically, you can set payments to start once you reach age 60. However, if you delay your withdrawals, the income payments may be larger. Additionally, the money you contributed remains protected, backed by the claims-paying ability of the insurance company.

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Protected Lifetime Income Payout

With an FIA, you receive a series of fixed payments. This occurs over a set interval. Some FIAs also offer additional benefits. If you have selected an income rider, for example, you might see payment amounts increase. This option is designed to keep up with inflation and other cost increases in retirement.

However, there are some restrictions to income riders. Make sure you understand the costs as well as the benefits. We’ll be happy to meet with you to explain. We can also answer any questions you may have about annuities, and their potential for protected lifetime income.

Additionally, some withdrawals may impact taxes. For example, taking money prior to age 59 1/2 may create additional 10% federal tax on the money.

It's important to seek advice so that you'll make the right choices and handle the situation as best you can.
Fixed Indexed Annuities

Money There When You Need It Most

The flexibility and choices available are the main reason people choose annuity contracts, along with the protection benefits. During market dips, the insurance company takes the risk, not you. Additionally, the benefits that come with an FIA can also help secure your legacy. Your beneficiaries can receive money from your annuity without it going through probate. The choices available to you:

Time Period

Generally, the accumulation time period is between five and ten years. No surrender charges are applied, assuming you follow the contract terms. The interest credited to your annuity is also protected during this time. You may choose a longer period. This may possibly increase your interest rate.

How Much You'll Get

You can control your retirement income with an FIA. During the accumulation phase, your money will grow. Once past the waiting period, you can then take income payments. Your individual contract will detail the payout schedule.

When You Get Your Income

There are choices you can make in regards to how often you receive payments. You could choose to receive them annually, or quarterly. The payments may be partially tax-free.* Depending on your annuity, you may have the potential to earn additional indexed interest. This interest will be gained tax-deferred, meaning you won’t pay taxes on it until you withdraw the money.

Secure Your Legacy

An FIA allows your beneficiaries to receive the value of your annuity if you pass away before the payout.

Some types also allow a death benefit to your loved ones, even after income payments. Your beneficiaries can get this money in payments, or in one lump sum. For this reason, you can choose an annuity product even if you have no plans to access the income in it yourself.

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