Fixed Annuities
Fixed Annuities earn a guaranteed rate of interest for a specific time period, such as one, three or five years. Once the guarantee period is over, a new interest rate is set for the next period. This guarantee of both interest and principal makes fixed annuities somewhat similar to Certificates of Deposit (CDs) purchased from a bank. Unlike a typical CD, however, an annuity is not backed by the Federal Deposit Insurance Corporation (FDIC); its security is directly related to the financial health of the insurance company that issues the annuity.	Click Here For A FREE Annuity Quote!
Equity-indexed annuities are one of the hottest insurance products going these days. Equity indexed annuities offer you a guaranteed minimum return in the stock market in exchange for a limit in maximum return. In short: You get less upside but much less downside. An immediate annuity is purchased, generally at or near retirement, by lump sum and is immediately converted into a series of income checks paid monthly, quarterly, semi-annually or annually. Income payout is based on a guaranteed, fixed interest rate. Deferred annuities can be a great way to accumulate money for retirement, if you want retirement income beyond what you will receive from Social Security or your pension plan. They are particularly effective if you have many years before retirement. Your money grows tax deferred, which means you pay no taxes on earnings until you begin to withdraw your money.