Annuity Basics
This retirement product is designed to protect your money from risky market conditions.
What is an annuity?
This type of annuity requires an investment license because the money is invested into mutual funds and stocks.
What is a variable annuity
In exchange for safety from losses, the insurance company limits growth using this feature.
What is the ceiling?
An annuity premium can be paid monthly or in this form.
What is a lump sum?
This rider allows the annuitant to receive payments for life instead of a set period.
What is a Guaranteed Lifetime Income Rider (GLIR)?
The main reason people choose this product is to transfer market risk to this type of company.
What is an insurance company?
This type of annuity is a conservative contract that stays with the insurance company and earns a set amount of interest each year.
What is a fixed annuity?
With an FIA, your money can only do these two things.
What is grow or stay the same?
Rolling over money from IRAs or 401(k)s into an annuity uses this type of funds.
What are qualified funds?
Annuities can help with this goal by passing money to beneficiaries as the account value grows.
What is leaving a legacy?
Because annuity money is not directly invested in the market, it is protected from this during events like 9/11, the housing bubble, and COVID.
What is market loss or economic downturn loss?
This product falls under the fixed umbrella and uses a floor and a ceiling for interest crediting.
What is a Fixed Indexed Annuity (FIA)?
This is what you will never experience in a Fixed Indexed Annuity, even during market downturns.
What is a loss of funds?
After-tax money from savings or CDs used to fund an annuity is called this.
What are non-qualified funds?
For clients who are uninsurable, this product is a great way to grow and protect money to pass down.
What is an annuity?
There are exactly this many main types of annuities.
What are two?
In a Fixed Indexed Annuity, this is usually set at 0%, meaning the worst your account can do is stay the same.
What is the floor?
Even non-qualified funds in an annuity grow this way.
What is tax-deferred?
The document compares protecting retirement money with annuities to using insurance to protect these three things.
What are homes, cars, and life?