The Margiloff Agency
Individual Insurance & Employee Benefits
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(207) 771-5670 (cell)
www.SusanMargiloff.com
ANNUITIES:
Confused about Annuities?We can help!
What Are Annuities?
Annuities help provide you with an income during your retirement. Whereas life insurance is intended to provide a death benefit, annuities are intended to provide a predictable income to you (typically after retirement). Typically, your investment in an annuity is tax deferred, whereas any money you have in a brokerage account is taxable year after year. Additionally, the stock market can have down years, causing you to lose the money you hoped to have available to you during retirement. With most annuities, your invested fimds are guaranteed to not lose money.
There are many types of annuities. See below for a definition of 3 annuities we offer:
Fixed Annuity
With a fixed annuity, the interest rate is set by the insurance company for a defined period of time. Interest rate yields are often higher than with a bank CD, so a Fixed Annuity can serve as a great savings tool if you won't need to access the funds for 5, 7, 10 years or more.
Immediate Annuity
With an immediate annuity, you pay a lump sum to purchase your annuity. No future premium payments are made.
The insurance company will begin to make a guaranteed fixed income payment to you within a year from contract issue. You may choose a guarantee lifetime payment or a payment as short as 5 years depending on your financial needs and goals.
Fixed Indexed Annuity
With a Fixed Indexed Annuity, the interest is credited based on the change of an index such as the S&P 500. Because your money is not actually invested in the index there is never a risk of loss due to market fluctuations, but there is an opportunity for the value of your annuity to experience gains.