Understanding Annuity Benefits

Understanding Annuity Benefits

An annuity is a contract with an insurance company, enabling a person to receive money on a set schedule.

Typically, an annuity can allow you to receive money for the rest of your life. With an annuity, you can set things up so you receive regular monthly, quarterly, or annual payments. The individual details vary, of course, from contract to contract. Furthermore, there are different types of annuities. For example, fixed annuities and fixed indexed annuities, or FIAs. FIAs don’t lose money when the market drops. However, a variable annuity might suffer losses if the market goes down. Because we hold protection of principal as one of our core values, it’s our belief that you should select a product that provides protection.* Additionally, you should look for a way to earn a reasonable rate of return.** An FIA can provide you with both of these benefits, and more. Interested in learning more? Contact us.

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Fixed Indexed Annuity Benefits

An FIA comes with the benefit of keeping your money protected.* This is because it doesn’t invest money in the market. However, an FIA earns interest based on the performance of a market index. This isn’t the same thing as having your money directly invested. With an FIA, if the market goes up, you may see higher returns. But, if the market drops down, you won’t lose any money, guaranteed.* The issuing insurance company sets aside a reserve as protection for the money. The contract and the strength of the insurance company will protect you.

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smiling senior couple embracing outdoors annuity benefits suncrest wealth management tucson az

Phases of an Annuity

There are two main phases in an annuity contract: The accumulation phase, and distribution phase. These are important in understanding annuity benefits:

Interested in learning more about these products? Reach out to us. Annuity benefits are one of the things we discuss at our informational seminar events. Or, if you want to cut straight to the chase, you could schedule a one-on-one meeting with us. We can discuss your situation and goals with you, and determine whether or not an FIA is right for you.

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