Annuities

People are living longer and that means more time and savings will be spent in retirement. If you need a tax-deferred investment to provide guaranteed income for life or a specified number of years in the future, an annuity may be worth considering.

What is an annuity?

An annuity is a contract between an insurance company and an annuity owner. In exchange for a purchase payment, or series of payments, the insurance company guarantees to pay a stream of income in the future.

Who needs an annuity?

Annuities are designed to help individuals convert assets into a stream of income.

What is covered by annuities?

Annuities offer guaranteed income.

What are the different types of annuities?

• Immediate Annuities

  An immediate annuity begins a stream of income within 12 months from the date of issue. You decide when payments will begin within that period and how long to receive income. There are two types of immediate annuities - fixed or variable.

• Deferred Annuities

  A deferred annuity is a long term investment designed to accumulate assets for retirement. It also offers the ability to turn those assets into a predictable stream of income at some point in the future. You decide when payments begin and how long to receive income. There are basically two types of deferred annuities - fixed or variable.

Guarantees are based on the claims-paying ability of the issuing company. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity. Annuities do not provide any additional tax advantage when used to fund a qualified plan. Investors should consider buying an annuity to fund a qualified plan for the annuity's additional features, such as lifetime income payments and death benefit protection. When considering a variable annuity, be sure to read the prospectus and talk with your financial professional prior to purchasing.

Variable immediate annuities and variable deferred annuities are sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and its underlying investment choices. For this and other information, obtain the applicable product prospectus and the underlying investment choices prospectus from your registered representative. The prospectuses should be carefully considered before investing or sending money.

Distributions may be subject to income tax, a contingent deferred sales charge or a surrender charge. If taken prior to age 59 1/2, a 10% federal income tax penalty may apply.