What is an Annuity?

An annuity is a long-term retirement savings product that can help protect you from outliving your money. It has the potential to grow tax-deferred, have death benefits to protect your beneficiary and optional living benefits to protect your retirement income. You can choose how to fund your annuity, how interest is credited to it and how you take payments from it.

A contract is created when an individual makes a payment (or a series of payments) called premium, which will generally grow at a set rate and in a tax-deferred status. In return for this premium, the insurer guarantees periodic payments back to the individual, either beginning immediately or at some future date. There are many defining options and characteristics of an annuity contract. 

Interest credit can be based on the option to receive the payments as a guaranteed income for life or until the death of the person or persons named in the contract. I welcome the opportunity to meet with you and discuss annuity products designed to help people safely save more by accumulating growth with asset protection.

Immediate Annuities

An immediate annuity guarantees payments, which start right away, for a specified time period or for a lifetime This contract is generally used as a way to generate income payments.

These periodic payments may be either level or increasing and designated for a fixed term, upon death or other combinations. 

The chief characteristic of an immediate annuity is the contract’s ability to distribute savings with a tax-deferred growth factor. 

Deferred Annuities

A deferred annuity grows, tax deferred, until the contract is later annuitized (put into a payment stream) or surrendered (paid out as a lump sum).

A deferred annuity contract is chiefly a vehicle for accumulating savings and eventually distributing the value — either as a payment stream or as a one-time, lump-sum payment. 

All varieties of deferred annuities have one thing in common: the increase in account value is not taxed until those gains are withdrawn (or paid out). This is also known as tax-deferred growth.



Annuities are products of the insurance industry and are not guaranteed by any bank nor insured by FDIC or the NCUA/NCUSIF. They may lose value. Annuities have no bank or credit union guarantee, not a deposit, and not insured by any federal government agency. May only be offered by a licensed insurance agent.

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Questions or Comments

I welcome your questions or comments regarding Annuities.  Thank you!

Contact  (951) 204-2745

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