Fixed Annuities
Credit a declared interest rate for a set period, subject to the insurer's terms. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurer.
Annuities
Insurance-Based Retirement Income Options
An annuity is a contract with an insurance company that can help with retirement income or accumulation. They aren't right for everyone — understanding the trade-offs matters.
Understanding the basics
Understanding Annuities
Fixed Indexed Annuities
Credit interest based partly on the performance of a market index, subject to caps, participation rates, or spreads. You are not directly invested in the market, and credited interest can be zero in some periods.
Retirement Income Considerations
Some annuities can be converted to a stream of income, sometimes for life. Optional income riders may be available for an additional cost.
Surrender Periods
Most annuities have surrender periods — often several years — during which withdrawals above a free amount incur surrender charges. Annuities are long-term products.
Fees & Limitations
Riders, market value adjustments, caps, and charges can affect your results. Withdrawals before age 59½ may incur a 10% IRS penalty in addition to ordinary income tax.
Guarantees & Risks
Any guarantees apply only as described in the contract and depend on the issuing insurer. Annuities are not FDIC insured and are not risk-free.
Why people consider it
- Seeking predictable retirement income
- Tax-deferred accumulation
- Wanting principal protection features of fixed products
- Planning for longevity
Potential benefits
- Potential for income you cannot outlive (with certain options)
- Tax-deferred growth until withdrawal
- Fixed products are not directly exposed to market losses
Important limitations
- Surrender charges for early withdrawals
- Limited liquidity during surrender period
- Indexed returns are subject to caps and may be zero
- Guarantees depend on the issuing insurer
- Not FDIC insured; not a bank deposit
Eligibility & pricing
What Affects Cost and Eligibility
Annuity suitability depends on your age, income needs, time horizon, liquidity needs, existing assets, and risk tolerance. A suitability review is required before any recommendation.
Have Questions? Let's Talk Them Through.
Important Disclosures
- Annuities are insurance products issued by licensed insurers. Guarantees are backed by the financial strength and claims-paying ability of the issuing company. Not FDIC insured. Not a deposit. May lose value if surrendered early.
- Fixed indexed annuities are not securities and do not directly participate in any stock or equity investment. Seven Financial Group does not provide tax or legal advice.
- [Insurance license disclosure pending verification — add producer name, state license number(s), and affiliated agency here before publishing.]