General Overview and Annuity Best Practices
An Annuity in its basic sense is a contract that is created when an insured individual or trust pays a life insurance company a premium that will later be distributed back to the insured party over time. This is similar to the contract between an individual purchasing a Certificate of Deposit with a bank. Annuity contracts have traditionally provided a guaranteed distribution of income over time or for the rest of the insured individual's life. However, the majority of today's annuity owners use annuities to accumulate funds free of any taxable interest with the objective to take a contractually guaranteed income stream for life at a later date.
There are four main categories of annuities today that each play a different role for specific consumers. We encourage you to explore Annuity University to learn about all four annuity categories:
• Fixed Annuities
• Income Annuities (SPIA's, deferred income annuities, and longevity annuities)
• Variable Annuities
• Index Annuities
Annuity123 is owned and operated by consumers who do not have insurance licenses and do not give any investment or insurance advice. We created this website to educate fellow consumers on both the benefits and drawbacks of annuities. After interviewing income experts, annuity owners, and doing independent research, we came to a few conclusions.
• Annuities are Not for everyone
• Annuities are sold incorrectly in some situations
• Annuities, when positioned correctly can be one of the best decisions a retiree or baby
boomer ever makes
• Annuities are one of the last vehicles to contractually guarantee an income stream for
the rest of a consumer's life
• Annuities should never be purchased by any consumer that has not educated themselves
on the pros and cons of annuity features
Please enjoy the site we have put together and we encourage any and all feedback on anything that needs to be altered or added.