Financials
Annuities
An annuity is a contract between yourself and a life insurance company in which you agree to pay a premium payment(s) to the issuing insurance company in return for a guaranteed payment(s) at a future date or over a period of time.
A fixed annuity earns a fixed interest rate on your premium. This amount is declared by the insurance company and can change over time and includes a guaranteed minimum interest rate that the contract will earn.
Additional benefits offered by fixed annuities include:
- Tax-deferred growth
- Guarantees to your principal
- The option to take a lifetime income stream
- Avoiding probate with a properly named beneficiary other than your estate