Annuities

For Tax-Deferred Earnings, Income Planning and Investment Options

If you are saving for retirement or already retired and income is a concern, annuities could have a dramatic impact on your future. All Fixed, Index and Immediate Annuities provide guarantees* that you may not already have.

Consider consulting with an experienced TradeWell™ representative today to see whether annuities might be right for your portfolio.

Here Are the Five Basic Annuity Types:

 

Type Description Features
Fixed Annuity Fixed annuities are retirement contracts built on protection and guaranteed returns, including a guaranteed minimum interest rate. They offer guaranteed retirement income for a set period and, depending on product chosen, may provide guaranteed* return of initial investment and death benefit protection.
Index Annuity Index annuities combine the benefits of a traditional fixed annuity, including guaranteed minimum interest, with the potential to earn additional interest linked to the return of a market index. In addition to benefits of a fixed annuity, they may allow owners the flexibility to build their contract to meet individual needs.
Immediate Annuity Often, fixed annuities are deferred. An immediate annuity, however, is popular choice for people already in retirement because it guarantees lifetime income with a single lump-sum payment. Contract owners can choose to receive income payments for life, or a shorter period of time. Payments are based on a fixed interest rate and can be paid out on a monthly, quarterly and yearly basis.
Hybrid Annuity Hybrid annuities combine the advantages of fixed annuities, fixed index annuities and immediate annuities. The hybrid also shares some of the features of a variable annuity as well. In addition to the benefits of the other annuities, the hybrid provides more flexibility to start, and also stop the flow of monthly income. Hybrids also provide liquidity that could be used for income and cash flow in retirement.
Variable Annuity Variable annuities involve investment risks and may lose value. An annuity is a long-term, tax-deferred investment designed for retirement. Earnings are taxable as ordinary income when distributed and, if withdrawn before age 59½, may be subject to a 10% federal tax penalty. Annuities may not be suitable for some investors; they have early surrender charges and may limit yearly distributions to 10% of the contract value. In addition to investment choices, variable annuities typically provide optional benefits for an additional charge. These can include: guaranteed* minimum income even if markets decline, the ability to increase your retirement income by potentially locking in market gains and enhanced benefits for beneficiaries.

 

Variable annuities involve investment risks and may lose value. An annuity is a long-term, tax-deferred investment designed for retirement. Earnings are taxable as ordinary income when distributed and, if withdrawn before age 59½, may be subject to a 10% federal tax penalty. Annuities may not be suitable for some investors; they have early surrender charges and may limit yearly distributions to 10% of the contract value.
*Guarantees are provided through the claims paying ability of the underlying insurance agency.