Annuity Products

An annuity is not insured by the FDIC (like a bank CD, checking account, or savings account). Annuity guarantees are backed by the financial strength and claims paying ability of the issuing insurance company.

• Favorable economic conditions, demographic shifts, and greater consumer demand for lifetime retirement income and investment protection have propelled annuity sales growth over the past two years. In 2022, annuity sales totaled a record high $313 billion.
• At the end of 2023, LIMRA is projecting sales to exceed $350 billion, largely based on strong fixed annuity sales.*
• The demand for protection and annuities continues to grow. 97% say having guaranteed lifetime income in addition to Social Security in retirement is valuable.**
• 93% of consumers who protected their portfolio with an annuity in 2022 are satisfied with their investment choices for 2022 and 44% are extremely satisfied. Those who are protected by a pension and/or an annuity have a significantly more positive outlook on their retirement prospects.**

Do you have clients looking for a financial product that protects their retirement planning in fluctuating market conditions?

*Source: 2023 LIMRA Industry Trends

**Source: 2023 Alliance for Lifetime Income and CANNEX Protected Retirement Income and Planning Study

Understanding an Annuity

When taking time to plan for your retirement, you have multiple choices on how to accumulate assets and prepare for potential financial needs ranging from your own to your beneficiaries. Basically, an annuity can help supplement your retirement income. One of the advantages of a fixed annuity is that during the accumulation phase, interest credited to a fixed annuity is tax deferred.

Sometimes, there can be confusion about fixed indexed annuities. A Fixed Index Annuity is a tax-favored accumulation product issued by an insurance company. The annual growth is bench-marked to a stock market index (e.g., Nasdaq, NYSE, S&P 500) and the interest rate is not fixed. You are not participating in the marketplace and the amount earned on the Fixed Index Annuity is interest. Your cash value and credited interest is not subject to marketplace downturns.

An annuity helps provide you a guaranteed supplemental income when a pension, investment account or Social Security might not cover your income needs during a long retirement period. Most annuities can be structured to provide a guaranteed period, which may result in providing income to your beneficiaries in the event of your early passing.

What are the Fixed Indexed Annuity Options?

Fixed indexed annuities also may include or offer optional riders that can be purchased for a charge. Rider features vary by product and are not available from every insurance company. They can offer benefits such as: lifetime income, increased liquidity, specific death benefit option, nursing home care, chronic illness and critical illness. You also have an annual right of withdrawal from most annuities.

Consumer Resources

These materials are provided by the Coalition of Annuity Awareness, which is comprised of industry associations who serve consumers by helping them understand annuity products. As today’s challenging economic environment continues to evolve, a growing number of individuals and families are turning to annuities to help provide security for their retirement.

• The Fixed Annuity Umbrella (PDF)
• We Love Fixed Annuities (PDF)
• Fixed Indexed Annuities – Your Questions Answered (PDF)
• Facts About Annuities: Is My Annuity Protected If My Insurance Company Fails? (PDF)
• Facts About Annuities: How Will I Get Income from My Annuity? (PDF)
• Facts About Annuities: How Can I Protect Against Fraud When Buying a Fixed Annuity? (PDF)

This material is intended for both educational purposes and to promote interest in the subject matter. It does not address any individual’s specific situation and is not to serve as the basis for any purchasing decision. The material is based on the information available to me and, while deemed accurate, is not guaranteed. Numerical examples, if any, are only illustrative. Guarantees, when applicable, are backed by the financial strength and claims-paying ability of the issuing carrier. For additional information, please contact our agency.