Annuities

Great American Insurance Group is committed to simplifying your path to financial security with annuities that are easier to understand and superior service every step of the way.

What does the perfect retirement look like to you? It might be relaxing on the beach, traveling the world, giving back to your community or simply spending time with family. The fact is, no matter how you plan to spend your retirement, you need a solid financial plan to get there.

An annuity might be one solution to help you achieve your goals.

What is an annuity?

Simply put, an annuity is a contract between you and an insurance company. It is designed to protect and grow your money, and then provide a stream of income during your retirement.

Here are some reasons you might want to consider purchasing an annuity:

  • Protection and growth: You want to protect your money from loss while still having growth opportunity.
  • Tax-deferral: You want to take advantage of tax-deferred growth.
  • Retirement income: You want to turn the money you’ve saved into a regular paycheck for a specified number of years or for life.
  • Death benefit: You’re looking for an efficient way to leave a legacy for your loved ones.

Tools & Resources

Find Tools & Resources to help secure your financial future.

Are you a current annuity policyholder?

Looking for coverage for your business?

  For Businesses

Types of Annuities

Grow your money based on the performance of an external index, while protecting it from market declines.

Grow your money at a fixed rate that is guaranteed for a specified period of time.

Grow your money based on the performance of an external index, and choose a level of protection from market declines.

Grow your money through the performance of underlying subaccounts that you select.

Turn your money into an immediate stream of income.

A solution for businesses that want to transfer their pension risk.

Annuity Insights


What Is the Benefit Of Tax-Deferred Growth?

Aug 23, 2017, 09:06 AM
One of the benefits of an annuity is the opportunity for your money to grow tax deferred. This means no taxes are paid until you take a withdrawal, so your money can grow at a faster rate than it would in a taxable product.
Tax Deferred, Annuities, Great American Insurance Group
One of the benefits of an annuity is the opportunity for your money to grow tax deferred. This means no taxes are paid until you take a withdrawal, so your money can grow at a faster rate than it would in a taxable product.
Author : Great American Insurance Group
Meta Title : What Is the Benefit Of Tax-Deferred Growth? - Great American Insurance Group
Published Date : Aug 21, 2017, 00:00 AM

One of the benefits of an annuity is the opportunity for your money to grow tax deferred. This means no taxes are paid until you take a withdrawal, so your money can grow at a faster rate than it would in a taxable product.

The following chart shows how a purchase payment of $100,000 grows in a tax-deferred product compared to a taxable product over the course of 20 years. See how the tax-deferred product outgrew the taxable product, even after paying a 20% tax. This increased growth can help you have more income for your retirement years.

Even after paying a 20% tax, the tax-deferred product outgrew the taxable product by more than $25,000.

Tax Deferred Growth Graph

This graph assumes a $100,000 qualified investment, accumulated for 20 years, with a 4% annual growth rate. Lower capital gains and dividend tax rates would make the taxable investment more favorable than the rate illustrated and reduce the difference in performance between these accounts. Consider your current and anticipated tax brackets in making your decision, as they may also impact comparison results. The amount of tax-deferred accumulation would be reduced if early withdrawal charges were reflected. This is a hypothetical scenario for illustration purposes only.

This information is not intended or written to be used as legal or tax advice. It was written solely to provide general information and support the sale of annuity products. You should seek advice on legal or tax questions based on your particular circumstances from an attorney or tax advisor.

For qualified contracts, the full amount withdrawn is generally subject to income tax. For other contracts, only the gains are subject to income tax. If you are under age 59½, the taxable amount is also generally subject to a 10% federal penalty tax.

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