Indexed AnnuitiesIntroducing Indexed Annuities from the
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What is an Annuity?The definition of an annuity is an investment yielding a sum of money, payable periodically, including all at once or for a given number of years or for life. It is a periodic payment of money or the right to receive such a payment.By definition, an annuity is insurance against living too long! You are buying insurance against outliving your retirement investments. Annuities can provide a supplement to your company pension or 401(k) plan, helping ensure that the standard of living you enjoyed while working will continue long into retirement. The annuity definition of "term certain" is one that guarantees that either you or your beneficiary will receive payments for a certain period of time, such as 10 to 15 years. For example, if you died three years after you began receiving payments from a 10-year term certain annuity, your beneficiary would still receive payments for the next seven years. The annuity definition of "amount certain" is one that guarantees that you or your beneficiary will receive a guaranteed amount, no matter when you die. Your annuity payments are set up based on your expected lifetime. But, if you have not yet received the guaranteed amount by the time you die, your beneficiary will receive the balance. Of course, your choice of annuity definition affects the amount of your payments. If you choose a guaranteed option (either time certain or amount certain), your payments will be lower than if you choose a non-guaranteed option.
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