Call Us (336) 368-5204 ☰ ˟
Logo

¡Se Habla Español!  |

 Call Us: (336) 368-5204
  • Home
  • Get A Quote
    • Annuities
    • Automobile
    • Business & CommercialImage of right arrow
      • Commercial Auto Insurance Quote
      • General Liability Quote Form
      • Business Owners (BOP) Quote Form
      • Workers Compensation Quote
    • Homeowners
    • Life
    • Recreational VehicleImage of right arrow
      • Recreational Vehicle Insurance Quote
      • Watercraft Insurance Quote
      • Motorcycle Insurance Quote Request
  • Blog
  • Resources
    • Refer a Friend
    • Important Links
    • Insurance Glossary
  • About Us
    • About Simmons Insurance Agency
    • Our Locations
    • Employee Directory
    • Customer Testimonials
    • Privacy Policy
  • Contact
    • Contact Us
    • Join Our Newsletter
Icon

Auto

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

Home

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

Business

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

Life & Annuities

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Icon

RV & Boat & Motorcycle

We browse through a wide variety of coverages and find the right one for you.

Get a Quote
Home > Blog > Annuities: Are They Right for You?
MONDAY, FEBRUARY 15, 2021

Annuities: Are They Right for You?

money signDo you know what an annuity is? Do you know how it can help you prepare for your retirement future? This article provides a basic overview of annuities and explains how they might be right for you.  

What is an annuity?  
An annuity may be a viable option for your retirement financial security. An annuity is a contract between you and the insurance company by which you make a lump sum payment or series of payments. In return, the insurer agrees to make periodic payments beginning immediately or at a set date down the road.  

Types of Annuities: 
There are a few different types of annuities. The most common include: 

  • Fixed: The insurance company guarantees that you will earn a minimum rate of interest during the time that your account is growing. It also guarantees that the periodic payments will remain at an established dollar amount. These periodic payments may last for a defined period of time or for an indefinite period (such as the lifetime of the account). 

  • Variable: You choose to invest your purchase payments from various investment options (typically mutual funds). Rate of return and amount of periodic payments will vary.  

  • Equity-indexed: During the accumulation period, when making a lump sum payment or a series of payments, the insurance company credits you with a return that is based on changes in an equity index. The insurance company typically guarantees a minimum return that can vary. 



Benefits of an Annuity: 
There are a wide variety of benefits to having an annuity. Some benefits include: 

  • Diversifies your portfolio among a number of assets and manages your portfolio. 

  • Avoids outliving your assets, since annuities pay indefinitely. 

  • Provides guaranteed payouts.  

  • Protects your assets from creditors.

  

Considerations 
Look at your immediate and long-term financial needs to determine if you can afford to open an annuity. Should you have a sudden need for cash, you can usually withdraw a small amount from a deferred annuity without suffering a penalty. However, you will likely suffer a penalty if you withdraw a significant amount of money after only a few years of having an annuity. 

Posted 2:48 PM

Tags: annuities
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020

  • auto insurance(2)
  • life insurance(2)
  • coverage(2)
  • professional liability(1)
  • home insurance claims(1)
  • automobile insurance(1)
  • vehicle(1)
  • flood insurance(1)
  • earthquake policy(1)
  • earthquake insurance(1)
  • homeowner insurance(1)
  • annuities(1)
  • property(1)
  • bop(1)
  • business(1)
  • owner(1)
  • value(1)
  • commercial(1)
  • insurance(1)
  • risk(1)
  • new car(1)
  • home insurance(1)
  • cyber liability(1)
  • policies(1)
  • policy(1)
  • homeowners insurance(1)
  • car insurance(1)
  • business insurance(1)
  • workers compensation(1)
  • business general liability insurance(1)
  • life insurance policy(1)
  • commercial auto insurance(1)
  • auto(1)
  • home(1)

View Mobile Version

Contact Us Today!
(336) 368-5204

Social Social Social Social Social

Resources

  • Products
  • Customer Service
  • Payment Options
  • Report a Claim
  • About Us
  • Refer A Friend
  • Our Carriers
  • Blog
  • Contact Us

Contact Us

534 S Key Street
Pilot Mountain, NC 27041

P: (336) 368-5204 | F: (336) 419-0208 | E:pammorgan@simmonsinsuranceagency.com
© Copyright. All rights reserved. | Powered by Insurance Website Builder