Types of Annuities
Immediate or Income Annuity
An immediate annuity is designed to provide a stream of income that begins soon after purchase. Depending on the contract, it may offer guaranteed income for a period of time or for life, as well as optional features that can affect payouts, fees, and other contract terms. Benefits, guarantees, limitations, and costs vary by contract, so it is important to review the product details carefully and consult a licensed professional before purchase.
Deferred Annuity
Deferred annuities are insurance contracts that may be purchased with a single premium or through flexible premium payments over time. During the accumulation phase, earnings may grow tax-deferred, and the annuity’s value and features depend on the specific contract. Some deferred annuities offer fixed guarantees, while others may have values that vary based on the underlying investment options or crediting method. Income is generally deferred until a later date, such as retirement. Surrender charges may apply if withdrawals are taken during a specified period after purchase, and the amount may depend on the timing and size of the withdrawal. Because features, limitations, guarantees, and costs vary by contract, it is important to review the contract carefully and consult a licensed insurance professional before purchase