What are Types of Annuity Products?
Are Annuity Products a Good Fit for Me?
Annuity products sold by financial institutions are designed to assist an individual in saving for retirement and then, upon retirement, provide the owner with a guaranteed stream of income. As a result, annuity products one of the best financial instruments for an individual during their retirement years.
A major selling point for annuity products is the fact that they are tax-deferred until they are withdrawn, usually at retirement, at which point, the income is taxed. You can structure these instruments so that you receive income in a number of ways, from guaranteed payments for as long as you live, to a set income for a number of years. For the right investor, annuity products can be an instrumental part of their retirement plan.
Annuity Products may assist you to:
- Receive income payments in retirement for as long as you live
- Provide beneficiaries with a benefit at death
- Provide a means of diversifying your investments
- Provides growth on a tax-deferred basis
- Guarantee that you won’t outlive your savings
Common Annuity Products
| Types | Key Annuity Product Features |
| Fixed Annuity | Safety, stability and guarantees
|
| Immediate | Regular income
|
| Variable Annuity | Growth Potential from Equity Investments
|
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