Annuity

Annuity:

An annuity can be a solid part of your financial plan, irregardless of the type of investor you
are.  Annuities can help you build a comfortable, secure retirement, or provide you with an
immediate, guaranteed source of income for as long as you wish. They can protect you from
unexpected drops in the stock market and guarantee that your interest rate never falls below
a certain minimum.

An annuity is a contract between you, an annuity owner and an insurance company. They can
be purchased with a single lump sum or receive regular contributions over time. Your lump
sum payment can be made from existing savings, IRA funds, an inheritance or a 401(k).
Annuities allow you to withdraw some percentage of your annuity fund every year without
paying a surrender penalty. This is called a penalty-free withdrawal and guidelines vary
depending upon the plan you choose.

Choose from a Variety of Annuity Types:

Annuity - Deferred: An annuity that delays income payments until the holder
chooses to receive them.  

Annuity - Hybrid: An annuity which combines features of a fixed annuity and a
variable annuity.

Annuity - Immediate Payment: An annuity which is purchased with a single
payment and which begins to pay out right away.

Annuity - Joint Life: An annuity issued on two individuals under which
payments continue in whole or in part until both individuals die. also called joint
and survivor annuity.

Annuity - Life: Annuity that continues to pay out as long as the annuitant is alive.

Annuity - Single Life: An annuity that provides income benefits for one person
only.

Annuity - Single Premium Deferred:  A tax-deferred investment plan in which
an individual makes a single payment to a mutual fund or insurance company.
Similar to an IRA, but having no annual contribution limit.

Annuity - Qualifying: An annuity which is purchased under a qualified plan and
therefore receives favorable tax treatment.

Annuity - Equity Indexed: An annuity whose returns are based upon the
performance of an equity market index, such as the S&P 500, DJIA, or Nasdaq.
The principal investment is protected from losses in the equity market, while gains
add to the annuity's returns.

Annuity - Pre-Retirement Survivor: An immediate annuity for the life of the
surviving spouse of a participant who dies before the annuity starting date.

Annuity - Qualified Joint and Survivor:  A form of pension fund payment in
which the retired participant gets a check every month. If and when the
participant dies, the spouse continues to get a monthly check equal to one half of
the benefit for the rest of his or her life.