Steady Payments for Life

Stock market volatility over the past several years has led many investors in search of opportunities to lock in guarantees. As a result, many retirees are turning to immediate annuities for guaranteed income during retirement.

By providing a guaranteed income stream for life, an immediate annuity can help you preserve wealth during your retirement years and ensure that you always have income to help meet your needs. 

An immediate annuity is an insurance-based contract that is typically funded with a one-time premium. The issuing insurance company will distribute income payments from the annuity to a designated annuitant as outlined in the annuity contract.

Fixed or Variable
There are two types of immediate annuities: fixed and variable. Fixed annuities pay a guaranteed dollar amount to the annuitant, whereas variable annuity payments fluctuate based on the performance of underlying investments selected by the annuitant.

Annuity withdrawals are taxed as ordinary income and may be subject to surrender charges plus a 10 percent federal income tax penalty if made prior to age 59½. Surrender charges may also apply during the contract's early years. Generally, annuities contain mortality and expense charges, account fees, investment management fees, and administrative fees. The guarantees of fixed
annuity contracts are contingent on the claims-paying ability of the issuing company. Variable annuity subaccounts fluctuate with changes in market conditions. When a variable annuity is surrendered, the principal may be worth more or less than the original amount invested.

Variable annuities are sold only by prospectus. Please consider the investment objectives, risks, charges, and expenses carefully before investing. The prospectus, which contains this and other information about the investment company, can be obtained from your financial professional. Be sure to read the prospectus carefully before deciding whether to invest.

Income for Life or Period Certain
Insurance companies offer a variety of annuity payout options. An income-for-life annuity provides a guaranteed income stream that you cannot outlive. Some insurance companies offer a joint and survivor annuity that guarantees income for the lives of the annuitant and his or her spouse or designated beneficiary.

A period-certain immediate annuity provides a fixed monthly payment for a specified period (such as 10 years), after which payments stop. If you pass away during the specified period, the insurance company will continue making payments to your designated beneficiary. Unlike the case with an income-for-life annuity, it is possible to outlive a period-certain annuity.

An immediate annuity can help you preserve the assets you have worked so hard for and provide an option for a steady lifetime income stream.

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