Types of Annuities
There are five main types of annuities. Each annuity serves a different purpose and has different benefits and features. If you have questions about which type of annuity might be best for you, you can schedule a time to discuss things with one of our trained advisors. Listed below are the main types of annuities with a brief description of how they work. For more information, select a product below and click the link for details or talk with an advisor.
MYGA:
A MYGA is a Multi-Year Guaranteed Annuity. It is similar to a bank CD, but often has a better interest rate. You deposit a sum of money into your account and each year your account gets a specified interest credit. Like CDs, penalties may apply if you withdraw funds from the account before the annuity expires, but check with an advisor to see how that might affect things.
Immediate Income
Immediate Income Annuities, or Single Premium Immediate Annuities (sometimes called SPIAs), are one of the simplest forms of an annuity. You purchase a SPIA with one lump sum payment, and then the insurance company guarantees to pay you a specific amount every year for the rest of your life.
Deferred Income
Deferred Income Annuities are a simple type of an annuity, similar to Single Premium Immediate Annuities (SPIAs). The biggest difference between a deferred annuity and an immediate annuity is when you start to receive money from the annuity. If you can postpone your income from the annuity for a year or more, you can often get a nice bonus from the insurance company that you sign up with.
Fixed Indexed
An Indexed Annuity (sometimes called a Fixed Indexed Annuity) is a tax-deferred, long-term savings option that protects your principal from loss no matter what the market does and provides an reasonable opportunity for growth. Assets are not directly invested in a specific stock market index, but they do offer opportunity for growth based on the performance of a stock market index.
Variable Annuities
Unlike the annuities listed above, the value of Variable Annuities can go up or down. This is because Variable Annuities are often invested in stock market products that fluctuate from day to day. While there may be some cases where a person might be interested in a Variable Annuity, we have decided not to offer them at this time. If something changes and we start offering them, we will let you know.
