Trinity Insurance Company offers annuities that provide both income security and tax benefits during retirement. Their official plan documents and summary plan descriptions outline each annuity contract’s details.
Trinity Life Insurance Company Value Builder policies allow you to start building wealth earlier. Talk with your agent now for more details!
Variable Annuities
Annuities, like any investments, carry risks. But they also present opportunities for tax-deferred growth that investors should carefully consider before making investment decisions based on annuities. There are numerous types of annuities regulated on both a state and national level by insurance commissioners, the U.S. Securities Exchange Commission and Financial Industry Regulatory Authority (FINRA).
Investment risk in variable annuities, like investing in mutual funds, can vary significantly. An annuity’s income payments may fluctuate depending on how its underlying mutual fund investments perform; additionally, its expenses such as management fees or charges could erode investment value further.
Investors should also be aware that gains on variable annuity investments are taxed as ordinary income rather than at lower capital gains rates than apply when holding investments for longer than one year, and may incur withdrawal charges as well. Before investing, make sure your financial professional outlines all charges and expenses related to variable annuities before investing.
Contract prospectuses of variable annuities provide information about its underlying mutual fund investment options, their risks and charges as well as fee structures and any special features such as guaranteed minimum income benefits or step-up death benefits available through insurers.
Many variable annuities offer bonus credit features that promise to add a percentage of purchase payments made over an agreed-upon time frame, typically six to eight years, to the account value upon withdrawal from them. Unfortunately, these bonuses don’t come without costs; often insurance companies use them to compensate their financial advisor when you make withdrawals from them.
Investors should also keep in mind that when withdrawing money from a variable annuity within a certain timeframe, an insurer typically assesses a surrender charge with diminishing returns over several years known as a “surrender period”. This penalty serves to help offset costs associated with mutual fund investments within it as well as any charges or expenses of running the annuity itself.
Fixed Annuities
An annuity is a financial product designed to ensure steady income during retirement. An annuity contract between an individual and an insurance company provides for a guaranteed interest rate regardless of market fluctuations and tax-deferred status, making fixed annuities an excellent way of providing reliable sources of predictable income without taking on investment risks.
When purchasing an annuity, the money is deposited into an insurance company’s general account pool of premiums, where it will then be invested – often into government securities or high-grade corporate bonds – guaranteed not to fall below a set threshold and also guaranteeing your principal investment.
Fixed annuities do not rely on market fluctuations like variable annuities do and typically offer higher interest rates than CDs. Furthermore, any earnings within a fixed annuity do not accrue tax until withdrawn allowing your money to grow faster and give you greater buying power in retirement.
Fixed annuities can be an excellent way to diversify your retirement portfolio and protect it against inflation. Furthermore, they’re an effective complement to other retirement savings vehicles like 401(k)s and IRAs.
Selecting an annuity that best meets your financial goals and objectives can be essential to your financial wellbeing. Speak with an authorized Bankers Life agent/producer for guidance in finding out if a fixed annuity may be right for you.
Schedule a complimentary meeting now to explore your goals and the ways annuities could support them. By clicking “Speak To An Agent,” you agree to be contacted by a Bankers life Insurance agent/producer; to opt-out please select “Reject.” Additionally, current Bankers life Insurance customers may qualify for additional discounts on annuity products and services – which depend on state availability as well as eligibility criteria – please see our discounts page for further information.
Joint Life Annuities
An annuity is an investment designed to pay a fixed sum over time or your lifetime. An annuity can be funded either with one single lump-sum payment or through premiums; once it begins paying out however, accessing original investments or withdrawals usually incur penalties and fees.
An annuity may not be suitable for everyone’s retirement needs; however, those without enough guaranteed income from sources like Social Security, pensions or savings may need this form of financial product as a supplement to these sources. There are various types of annuities and understanding their features can help you decide if any one fits into your financial goals.
Joint life with last survivor annuities are lifetime income products that could be suitable for retirees, providing payments that continue for both your life and that of anyone designated in the contract (such as beneficiaries or spouses). This type of annuity is known as non-term certain annuity.
An annuity, commonly referred to as longevity insurance, offers guaranteed income that won’t run out. While they don’t provide as much security as certificates of deposit and similar financial instruments do, annuities are still protected by their insurer and often meet minimum financial standards that ensure they remain solvent.
An annuity provides investors with tax benefits, including deferral and growth opportunities that could prove advantageous. Since its exact tax treatment depends on your circumstances, it’s wise to work with an independent tax or legal professional in evaluating whether this financial tool meets your needs and goals.
Annuities are complex financial instruments with numerous features and options, so we invite you to contact us and learn how an annuity could fit into your financial plan, helping build a secure retirement.
Single Life Annuities
High-net-worth individuals looking for retirement income often turn to the single life annuity as an effective strategy. This type of annuity provides income either for life or a specific time period (e.g. 10 or 20 years). Because its lifetime income stream doesn’t incur taxation like other investments such as stocks and mutual funds do, making this strategy ideal for avoiding running out of funds in retirement.
An annuity provides tax deferment, meaning your earnings won’t be subject to taxes until they’re withdrawn from the contract. This feature can be particularly advantageous for people in higher tax brackets as they’ll get to keep more of their investment returns. Furthermore, investing in an annuity through an IRA, SEP IRA, SIMPLE IRA or similar retirement account means earnings may even be exempted from being counted toward your taxable income.
An annuity’s main advantage over certificates of deposit is their higher interest rate, helping you build up retirement savings faster while taking advantage of any growth opportunities that might arise. Furthermore, unlike certificates of deposit which rely solely on bank backing to safeguard them should they fail, an annuity offers additional protection in the form of state guaranty associations and state insurance guaranties in case the provider goes bankrupt.
An annuity is often misunderstood as being risky investment vehicles; this simply isn’t the case. Fixed and immediate annuities offer protection from market volatility by offering guaranteed minimum income payments and protecting savings against possible monetary loss.
If you are curious to gain more knowledge on annuities and their place within your financial plan, a reputable advisor may help find solutions tailored specifically to you. With SmartAsset’s free tool matching tool you with three pre-screened advisors from within your area that offer no-cost, no-commitment advice services; get started now.
