Annuities

Annuities provide a reliable way to secure your financial future and peace of mind for you and your loved ones. They offer steady income and protection against uncertainties, tailored to your goals. At America Life Wealth, we’ll help you see how annuities can support your long-term stability and bring your dreams closer.
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So What Is An Annuity?

An annuity is a long-term financial agreement between you and an insurance company. Using after-tax dollars, you fund your annuity, and the insurance company invests this amount in exchange for providing tax-free income to you or your beneficiary, depending on the policy terms.


Annuities come in two types: fixed and variable, each tailored to your financial goals. Both can be customized to suit your needs, whether for retirement or long-term financial security.


  • Fixed Index Annuity

    Fixed annuities offer guaranteed payments, providing stable, reliable income.


    This financial product guarantees the interest rate on the contract. 

  • Variable Annuity

    Variable annuities let your investment grow with market performance, offering higher potential returns but with more risk. 


    Earnings from this financial product can fluctuate based on your investments, meaning returns may vary depending on external factors. It carries the higher risk of the two options.

Unlike other financial products, annuities have no contribution limits. Your investment can grow in a tax-deferred environment, and earnings are taxed only upon withdrawal at your applicable tax rate.

What Annuity Options Are Available?

When considering annuities, they are often categorized into two main types: immediate annuities and deferred annuities.


Immediate Annuities 

An immediate annuity begins payments shortly after it is issued. These payments can be structured based on your preference—for a lifetime or a specified period. The amount of each payment is determined by a calculation that considers your lump sum principal and your expected lifespan.



Deferred Annuities 

Unlike immediate annuities, deferred annuities are designed with a longer timeline. They have two key phases: the accumulation phase, where funds grow tax-deferred, and the distribution phase, when payments are made according to the terms of the policy.


  • Accumulation Phase

    The accumulation phase of an annuity is when you add funds, either as a lump sum or through regular payments (monthly, quarterly, or annual basis). 


    During this phase, your investments grow tax-deferred until the distribution phase, when the annuity begins paying out.

  • Distribution Phase

    During the distribution phase of an annuity, the policyholder receives payments as outlined in the contract. These payments, whether monthly or annual, provide a reliable source of income, ensuring financial stability throughout the selected period.

Why Buy Annuities?

Annuities can be a valuable investment choice for individuals prepared to accept some level of risk in exchange for the potential of higher returns or payouts. The earnings generated can effectively supplement your income during retirement, ensuring financial stability over a defined period. Additionally, annuities provide a safeguard for maintaining financial independence as you age and may offer an opportunity to leave a meaningful inheritance for your loved ones.

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