Annuities are one of the best ways individuals have to set aside money on a tax-deferred basis.
A unique feature of an annuity, not found in any other investment vehicle, is that it can provide a stream of income that cannot be outlived. If the annuity benefits are to be paid over a lifetime, the monthly or annual benefit amount is guaranteed to come each and every month or year regardless of how long the individual lives. Several other payment options are also available. In the event of death, all proceeds can pass directly to a named beneficiary, without surrender charge, probate delay, estate settlement costs, or publicity.
Advantages of an Life Insurance Company Deferred Annuity
- No set up or annual administration fees.
- Single or multiple deposits for varying amounts can be made at any time.
- You have a choice of current guaranteed interest rates for six years, or a fluctuating rate of interest program. Annuity products may have restrictions or limitations. They contain surrender charges on early withdrawals, and the IRS imposes a 10% penalty tax for most withdrawals before age 59-1/2.
Deferred Annuities offer a distinct advantage over typical saving programs. They can offer you an income stream you cannot outlive in retirement, and interest earnings accumulate tax deferred. Auto-Owners can help you provide for your retirement needs with a deferred annuity program backed by a Safe. Sound. Secure investment portfolio.