Fixed annuities are like CDs but issued by insurance companies instead of banks. A fixed annuity allows for the accumulation of capital on a tax-deferred basis. In exchange for a lump sum of capital, a life insurance company credits the annuity account with a guaranteed fixed interest rate while guaranteeing the principal investment. Like CDs, they pay guaranteed rates of interest, usually at higher rates than bank CDs. Your money is guaranteed by the insurance company, not a bank and FDIC insurance. But bank interest is taxed each year, while annuity interest grows compounded tax deferred until you withdraw your money. This allows much greater accumulation over time. These are deferred annuities.  You can choose to annuitize the annuity at any time and receive regular payments that you cannot outlive.

Immediate annuities provide for immediate fixed payments you cannot outlive. Whether a deferred annuity you choose to annuitize or an immediate annuity, these contracts eliminate one of the biggest retirement risks, outliving your savings. This provides you, or you and your spouse, with guaranteed income by turning a portion of your savings into a stream of income payments for the rest of your life, something you can count on.

Equity-Indexed annuities are a hybrid type of deferred annuity.  It credits your account based on a portion of the stock market’s return when the market goes up, but when the market goes down, you are still credited a minimum guaranteed interest rate. You can’t lose money based on stock market performance.

Call Progressive Concepts today for more information on the various annuities available by strong insurance companies and get a free quote or projection of growth.