The Truth About Annuities
You may be familiar with annuities, but you may also be surprised about what they can mean for your retirement. Take a look at some of the top annuity myths, and the truth behind them!
Annuities are designed as a long-term savings vehicle. However, most annuities allow at least a certain percentage of money to be withdrawn each year without an early withdrawal charge.*
Annuity guarantees are backed by the claims-paying ability of the issuing insurance company. Accordingly, you should only purchase an annuity from a trusted, financially strong company.
Annuities come with a variety of settlement options that can provide a steady income stream. Additionally, an income rider may be added to a fixed-indexed annuity for an additional charge to help grow your income base and guarantee your income.
There are no maintenance or annual fees with a fixed or fixed-indexed annuity. Optional riders that provide additional benefits may be available for an annual charge.
Annuities provide a built-in death benefit that is paid directly to beneficiaries without the cost and delays of probate. If you pass away before benefit payments begin, your beneficiaries will receive the greater of the account value (minus applicable rider charges, taxes and loan balances) or the guaranteed minimum surrender value. If you pass away after benefit payments begin, depending on the payout option you selected, your loved ones may continue receiving benefit payments for a specific number of years or for life.
* Withdrawals are subject to income tax, and if made prior to age 59½, may be subject to a 10% federal tax penalty.
Annuities issued by Annuity Investors Life Insurance Company®, Cincinnati, OH, a wholly owned subsidiary of MassMutual. This information is not intended or written to be used as legal or tax advice. It was written solely to support the sale of annuity products. As a taxpayer, you cannot use it for the purpose of avoiding penalties that may be imposed under the tax laws. You should seek advice on legal or tax questions based on your particular circumstances from an independent attorney or tax advisor.