INSURANCE PRODUCTS & SERVICES

16 Benefits Of Fixed Index Annuities

1. Safety and Security . . . 4 Levels

• By contract, a fixed index annuity guarantees that your premium and interest is protected, and you can get it back again. There may be a penalty for an excessive early withdrawal, but as the annuity owner, you can control your withdrawals.

• Insurance companies rarely fail because they are heavily regulated by the state insurance departments. State regulations require that insurance companies keep reserves (money held in safe investments like T-bills) to back up your policy value.

• Certain state programs also may provide an additional layer of protection (contact your state insurance department for details).

• If you have a problem with the insurance company that issued your annuity, and you want to get a regulator involved, the regulator is located in your home state no matter where that insurance company is located.

1. Guaranteed Lifetime Income. An annuity is the ONLY product that can guarantee income for the rest of your life (and spouse if married).

2. Income Riders: Substantial Growth . . . Lifetime Payments . . . Guaranteed! In addition to the traditional methods of providing guaranteed lifetime income (called annuitization), many companies now offer income riders, and they have become extremely popular. Income riders give you the ability to build up a sizable guaranteed sum of money for the purpose of future income payments.

• There is no guessing and hoping what your income will be. You will know from day one what your guaranteed lifetime income will be at any point in the future when you decide to turn it on.

• Plus, unlike the traditional method of receiving lifetime income payments, you never lose control of your money. You can always stop the payments and do what you want with the money that's left in your accumulation value.

• And, unlike some forms of traditional annuitization, your beneficiaries will receive what’s left in your accumulation value.

1. Higher Rates. Interest rates on fixed index annuities can be higher than traditional fixed interest annuities, bank CDs, or other guaranteed products.

2. Interest Credited To Your Account Is Locked In. Your account value doesn't fluctuate all over the place. You're not up 10% one year and down 40% the next year.

3. Ability To Participate In Some Of The Market Upswing But None Of The Downside.

4. Get A Bonus / Jump Start On Your Retirement. Many indexed annuities provide an up-front premium bonus, which provides an immediate boost on your account value.

5. Tax Deferred Triple Compounded Growth. You do not pay taxes on your money until you withdraw it. Money normally paid in taxes each year is left in the annuity to earn even more interest, which results in greater growth of your money. You accumulate interest on your principal, interest on your interest, and interest on the money you would have paid in taxes. This is called "triple compounding."

6. Reduce Tax Burden. You accumulate your retirement funds tax free now while you're in a higher tax bracket and take the income during retirement when you're in a lower tax bracket.

7. Can Help Avoid Or Reduce Taxes On Your Social Security Benefits.

8. Estate Planning. Annuities are used in estate planning to help protect assets in the event of a long term care situation.

9. Death Benefit. Your beneficiaries will receive the full value of your account without penalty. Some companies offer an even higher guaranteed death benefit.

10. Probate Avoidance. An annuity death benefit is not subject to the costly delays of probate as long as a beneficiary is named. The money is paid immediately and without delay.

11. Liquidity And Accessibility. You can withdraw funds at any time, but during the surrender charge period, there could be a penalty. Most annuities allow up to 10% penalty free annual withdrawals after the first year of the surrender charge period, and 100% penalty free if confined to a nursing home or diagnosed with a terminal illness. There are no penalties if you start taking lifetime income payments or required minimum distributions from your IRA. Note that if you touch the money before age 59 ½, there could be a 10% tax penalty.

12. No Fees. Most, if not all, fixed index annuities have no fees unless you request a special benefit like a lifetime income rider or enhanced death benefit. Plus, sales commissions are not deducted from your premium.

13. Peace of mind. Peace of mind that you won't lose your money.