Annuity is another form of a life insurance contract. Bottom line, we need to chat. They are right for some people and you might be one. So let me leave you with 7 reasons to consider an annuity:
Ensure your surviving spouse has a continuing income. Ability to provide money in case of a catastrophic illness or if you (or your spouse) need to enter a nursing home.
Flexible access to your funds with a variety of surrender-free withdrawal options.
3) Tax Deferral
Earnings will not be taxed until you make withdrawals or start taking regular distributions. Benefit from triple-compounding: earning interest on principal, interest on interest, and interest on what you would have paid to taxes.
Ability to choose a predictable income stream. Lifetime Income options: payments continue for as long as you live.
Long-term savings plan for future income stream. Principal protection: Deferred index annuities never lose value in a “bad” year, while capturing some growth in a “good” year.
Deferred index annuities are able to have credited interest tied to an index, such as the S&P 500, without downside risk. Supplement your retirement income.
7) Estate Planning
Proceeds are paid directly to your named beneficiary.
All guarantees of a Fixed Annuity are backed by the claims paying ability of the issuing insurer.