Individual Annuities

Annuities are insurance products that work like an investment account that can be used to accumulate assets for retirement and to provide retirement income. The earnings on premiums paid into an annuity accumulate on a tax-free basis until you begin to withdraw money from the policy. The insurance company who issues the annuity guarantees your principal as well as a minimum interest rate that will be paid during the lifetime of the policy. The actual rate you earn may be higher than the minimum.

There are two basic types of annuity contracts:

• An immediate annuity is purchased with a one-time lump sum premium and begins paying monthly benefits to you.
• A deferred annuity accumulates your savings through premiums that are paid on a periodic basis, such as once per year or even once per month. When you reach retirement, the contract begins to pay you a monthly benefit.

To learn more about annuities, we have provided a presentation from ING entitled “A Strategy for Any Market”. Please click here to download the pdf