Annuity Advantages

An Annuity is any continuing payment with a fixed total annual amount. Annuity may refer to:

• Annuity (finance theory): any terminating stream of fixed payments over a specified period of time
• Life annuity: a financial contract providing payments for a person's lifetime

In the United States an annuity contract is created when an insured party, usually an individual, pays a life insurance company a single premium that will later be distributed back to the insured party over time. Annuity contracts traditionally provide a guaranteed distribution of income over time, until the death of the person or persons named in the contract or until a final date, whichever comes first. However, the majority of modern annuity customers use annuities only to accumulate funds free of income and capital gains taxes and to later take lump-sum withdrawals without using the guaranteed-income-for-life feature.

An annuity can help you accumulate tax-deferred earnings as part of your overall retirement plan. Annuities offer the opportunity for lifetime payments and tax-deferred earnings, and provide a guaranteed death benefit for your beneficiaries. All guarantees are backed by the continued claims-paying ability of the issuing insurance company.

You may want to consider investing in an annuity as part of your long-term financial plan if:

You're in a higher tax bracket, and want to defer additional income.

You've reached your deductible limit on all your retirement accounts and wish to save more for retirement.

An annuity is different from most other retirement savings vehicles — it's actually a contract between you and an insurance company. In return for making one or more premium payments, the insurance company agrees to provide you an income stream — usually during retirement. You can elect to receive payment all at once or as a series of payments, even for the rest of your life.

Let Bennett Insurance Group help when you are considering your needs for financial or insurance products for your home or business. Contact us at 623-979-4140

Presented By:

Jim Bennett

Bennett Insurance Group

623-979-4140

http://jimbennettinsurance.com

jim@jimbennettinsurance.com