What is an annuity?

An annuity is a contract between the client and an insurance company in which the client makes a lump-sum payment or series of payments and, in return, receives regular disbursements, beginning either immediately or at some point in the future.

The goal of an annuity is to provide a steady stream of income, typically during retirement. Funds accrue on a tax deferred basis and many aspects of the annuity can be tailored to the specific needs of the buyer.

 

What are the advantages of an annuity?

There are many advantages to an annuity. Those advantages include:

• Tax-Deferred Growth
• No Contribution Limits
• Guaranteed Steam of Income
• Probate Free
• Death Benefit for Beneficiaries

What are the different types of annuities Western Marketing offers?

Western Marketing offers two types of annuities: Single Premium Immediate Annuities (SPIAs) and Fixed Annuities. Fixed Annuities can be broken down further into Traditional Fixed Annuities, Multi-Year Guaranteed Annuities (MYGAs), and Fixed Index Annuities (FIAs).

 

Single Premium Immediate Annuities (SPIA)

SPIAs are relatively simple in terms of explanation. The client agrees to pay the insurance company a lump sum of money upfront, and the insurance company agrees to pay the client a certain amount of money, periodically, for a set period or for the remainder of the client’s life.

 

Traditional Fixed Annuities

In a Traditional Fixed Annuity, the client has a guaranteed rate of return each year determined by the insurance carrier. This guaranteed rate will typically change based on market conditions at the time the renewal rate is declared by the insurance company.

 

Multi-Year Guaranteed Annuities (MYGA)

MYGAs are a type of fixed annuity and work in a similar fashion to a traditional fixed annuity. Just like in a traditional fixed annuity, a MYGA has a guaranteed rate of return, and that rate is determined by the insurance carrier. But unlike a traditional fixed annuity that is subject to rate changes throughout the life of the contract, the rate provided for the MYGA is guaranteed for the entire duration of the contract.   

 

Fixed Index Annuities (FIA)

With a Fixed Index Annuity, growth of the annuity is linked to the performance of an index, such as the S&P 500. Having the annuity linked to an index rather than invested in the market allows for a customer to participate in growth in the index chosen while providing protection for the principal. FIAs also have a fixed account so your client can receive a guaranteed rate of return on the funds allocated into that account.

 

Other things some FIA annuities offer:

•          Lifetime Income Riders
•          Guaranteed Minimum Death Benefit Riders
•          Easy to understand Performance Trigger accumulation options

Give us a call at 800-852-7152 or fill out the form below to sell annuities through Western Marketing!