An Annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals. Annuities earn competitive fixed rates of interest that accumulates on a tax deferred basis. Payout methods vary and offer consumers a wide variety of choices.

    Key Benefits of Annuities

  • Complements other retirement income sources
  • Tax-deferred interest options
  • Nursing home care/terminal illness benefit options available

Different Types of Annuites


Fixed Annuities


Fixed annuities provide a guaranteed rate of return. During the period in which the annuitant is making payments to fund the annuity (the accumulation period), the insurer invests these payments in conservative, long-term securities (typically bonds). This, in turn, allows the insurer to credit a steady interest rate to the annuity contract.

Variable Annuities


Variable annuities invest deferred annuity payments in an insurer’s separate accounts, as opposed to an insurer’s general accounts (which allot the insurer to guarantee interest in a fixed annuity). Variable annuities shift the investment risk from the insurer to the contract owner. If the investments supporting the contract perform well (as in bull market), the owner will probably realize investment growth that exceeds what is possible in a fixed annuity.

Indexed Annuities


Indexed annuities are a type of fixed annuity that offer the potential for higher credited rates of return than their traditional counterparts but also guarantee the owner’s principal. The interest credited to an IA is tied to increases in a specific equity or stock index.

Deferred Annuities


Deferred annuities are those that provide income payments at some specific future date. Unlike immediate annuities, deferred annuities can be funded with periodic payments over time.

Immediate Annuities


An immediate annuity is designed to make its first benefit payment to the annuitant at one payment interval from the date of purchase. Since most annuities make monthly payments, an immediate annuity would typically pay its first payment one month from the purchase date. Thus, an immediate annuity has a relatively short accumulation period.

The Multi-Year Guaranteed Annuity (MYGA)

We offer only MYGAs because they’re easy to understand, and they offer a guaranteed rate of return as well as tax-deferred options.


The Multi-Year Guaranteed Annuity (MYGA) offers a guaranteed rate of return from the beginning of the contract with tax-deferred growth and no hidden management or service fees.

A MYGA, also known as a Fixed Rate annuity or CD alternative, is a type of fixed annuity that provides the annuitant with a pre-determined and guaranteed interest rate for the period of the annuity.

MYGAs are typically offered for terms lasting one, three, five, seven and 10 years, just like certificates of deposit (CDs). Since the interest rate is guaranteed for the term of the contract, MYGAs offer predictable retirement savings options.

Injured on the job. Income protected.

Straignt Life Income


A straight life income annuity option (often called a life annuity or a straight life annuity) pays the annuitant a guaranteed income for the annuitant’s lifetime. When the annuitant dies, no further payments are made to anyone. If the annuitant dies before the annuity fund (i.e the principal) is depleted, the balance, in effect, is forfeited to the insurer.

Cash Refund


A cash refund option provides a guaranteed income to the annuitant for the life and, if the annuitant dies before the annuity fund (i.e. the principal) is depleted, a lump-sum cash payment of the remainder is made to the annuitant’s beneficiary.

Installment Refund


Similar to a cash refund, the installment refund option guarantees that the total annuity fund will be paid to the annuitant or to the annuitant’s beneficiary. The difference is that under the installment option, the fund remaining at the annuitant’s death is paid to the beneficiary in the form of continued annuity payments, not as a single lump sum.

Life With Period Certain


Also known as the life income with term certain option, this payout approach is designed to pay the annuitant an income for life, but guarantees a definite minimum period of payments.

Joint and Full Survivor Option


The joint and full survivor option provides for payment of the annuity to two people. If either person dies, the same income payments continue to the survivor for life. When the surviving annuitant dies, no further payments are made to anyone.

Period Certain


The period certain income option is not based on the life contingency; instead, it guarantees benefit payments for a certain period of time, such as 10, 15, 20 years, whether or not the annuitant is living. At the end of the specified term, payments cease.

MYGAs VS CDs

Features

MYGA

CD

Free from market risk and price fluctuations?

Interest earnings free from current taxation when not withdrawn?

Interest earnings reinvested automatically with no current income taxation?

Tax liability on Social Security income eliminated on deferred accumulation?

Penalty free withdrawal provisions?

Deposit not reduced by commissions?

Automatically avoids the expense and delay of probate?

Guaranteed lifetime income options with tax advantages?

DISCLAIMER:
Withdrawals may be subject to regular income tax and, if made prior to age 59 1/2 may be subject to a 10% IRS penalty. Ensurem does not render legal or tax advice. If legal or tax advice is required, the services of a qualified competent professional should be sought.
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