What is an annuity?
Great question! An annuity is a contract issued by a life insurance company that can:
- Accumulate earnings on a tax deferred basis
- Distribute funds on a tax-advantaged basis, including income for life.
How risky are annuities?
On the risk spectrum, there are really only 2 types of annuities: Fixed and Variable.
- Fixed Annuiites offer guaranteed principal protection and guarantted interest rates.
- Variable Annuities offer mutual fund-like subaccounts and do not offer principal protection. For this reason, we do not offer variable annuities and take pride that among the hundreds of millions of premiums that we’ve help sell, not a single person has lost a dime to negative market performance.