Fixed annuity

Fixed annuities are retirement contracts built on protection and guaranteed returns, including a guaranteed minimum interest rate. They offer guaranteed retirement income for a set period and, depending on the product chosen, may provide guaranteed return of initial investment at anytime and provide death benefit protection.

Index annuity

Index annuities combine the benefits of a traditional fixed annuity, including guaranteed minimum interest, with the potential to earn additional interest linked to the return of a market index. In addition to the benefits of a fixed annuity, owners have the flexibility to build their plan to meet individual needs.

Immediate annuity

Often, fixed annuities are deferred. Immediate annuities, however, are a popular choice for people already in retirement because it guarantees lifetime income with a single lump-sum payment. Contract owners can choose to receive income payments for life, or a shorter period of time. Payments are based on a fixed interest rate and can be paid out monthly, quarterly, and yearly.

Hybrid annuity

Hybrid annuities combine the advantages of fixed annuities, fixed index annuities and immediate annuities. The hybrid also shares some of the features of a variable annuity as well. In addition to the benefits of the other annuities, the hybrid provides more flexibility to start, and also stop the flow of monthly income. Hybrids also provide liquidity that could be used for income and cash flow in retirement.

Variable annuity

Variable annuities offer a range of investment choices through sub-accounts that include stocks, bonds (or a blend of the two) and fixed account options. The withdrawals you eventually make from your variable annuity contract will be based on the value of the underlying investment choices you select. In addition to investment choices, variable annuities typically provide optional benefits for an additional charge. These can include: guaranteed minimum income even if stock markets decline, the ability to increase your retirement income by potentially locking in market gains and enhanced benefits for beneficiaries.

Variable annuities involve investment risks and may lose value. An annuity is a long-term, tax-deferred investment designed for retirement. Earnings are taxable as ordinary income when distributed and, if withdrawn before age 59½, may be subject to a 10% federal tax penalty. Annuities may not be suitable for some investors; they have early surrender charges and may limit yearly distributions to 10% of the contract value.