4 Facts to Understand Annuities

4 Facts to Understand Annuities

by Leslie Freeland, January 28, 2018

Annuities – an option for your retirement.

Did you know that annuities are a great way to generate a lifetime of income while protecting your hard-earned savings from the unpredictability of the stock markets? If that sounds like having your cake and eating it too, your next question should be:

“What’s an annuity?”

1. An annuity can provide a steady stream of guaranteed income – for life

Regardless of the type of annuity you buy, you can set it up so it creates income payments for you as long as you need it. For this reason, annuities are a great way to get the income you need in retirement. For example, before you retire, your annuity grows tax-deferred (meaning that you won’t pay taxes until you take your money out), and often grows at a higher rate of interest compared to most other investments. If you’re looking to supplement your income during retirement, your annuity can be set up to pay you the cash you need for the rest of your life.

As the owner of your annuity, you can choose to receive payments over a certain time period, say 20 years, or for the rest of your life.

2. An annuity is an insurance product

An annuity is a contract that you buy from an insurance company. It can be purchased with a single payment or with ongoing payments. Once you buy it, the money that you put into your annuity is invested by the insurance company in different ways. Just like your choice of coffee beverages at Starbucks, annuities come in different “flavors” so you can select the one that’s right for you.

3. Annuities are similar to a savings account

Remember when you wanted something like a house, a car, a vacation, etc., but because of the high cost, you had to save for it? You’d open a savings account, add money to it, earn a little interest, and then one day – you had enough to make that purchase. An annuity works much the same way, but you earn more interest. You put money into it, watch it safely grow, and then one day, it’s there when you need to withdraw it.

4. You can’t outlive your money if you have an annuity

Today, there’s talk about the common problem of Americans outliving their retirement money. An annuity is a great financial option that can provide you with a predictable stream of income to help supplement a pension or Social Security in retirement. Simply put, an annuity can give you the peace of mind knowing that your money is safely growing and will be there when you need it, for as long as you need it.

Contact Asurea today to learn more about annuities and how they can round out a well-planned retirement portfolio.




Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn More’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’

This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice. Consult with financial planning, tax, and legal advisors to determine if an annuity is suitable in your financial situation. Annuity policies are products of the insurance industry, are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity and may lose value.

Always read any proposed annuity contract carefully and be sure all of your questions are clearly answered before making any purchase. Dollar amounts are for illustrative purposes, not actual.


Leslie Freeland

Leslie Freeland

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Leslie joined Asurea as the Marketing Communications Coordinator in February 2015. Since then, she has been working closely with insurance professionals to educate the public on the importance of life insurance and protect the public from common scams with informational articles.
Leslie Freeland