Explore: Fixed Annuity

Guaranteed Growth and Steady Income for Retirement

A Fixed Annuity is a type of insurance product designed to provide guaranteed interest growth, principal protection, and the option for predictable retirement income. It is commonly used by individuals seeking conservative, stable returns without exposure to market volatility.

Unlike variable or indexed annuities, Fixed Annuities offer a set interest rate declared by the insurance company for a specific period of time. This makes them a reliable option for individuals who value certainty and preservation of capital over market-based growth potential.

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1. Guaranteed Interest Rate
Fixed Annuities credit your account with a guaranteed interest rate over a defined term (e.g., 3, 5, 7, or 10 years). This means your money will grow at a predictable pace, regardless of market conditions.

2. Principal Protection
Your premium is protected from market loss, and the value of your annuity will not decline due to stock market performance. This safety feature makes Fixed Annuities an appealing option for conservative savers and retirees.

3. Tax-Deferred Growth
Earnings accumulate on a tax-deferred basis, meaning you won’t pay taxes on the interest until you withdraw the funds. This allows your savings to grow more efficiently over time.

4. Lifetime Income Options
You can choose to annuitize your Fixed Annuity into a guaranteed income stream for life or for a specific period. This helps create financial stability in retirement by converting savings into predictable income.

5. Optional Features
Some Fixed Annuities may offer additional benefits, such as enhanced withdrawal provisions, death benefits, or optional riders (usually for an added cost). These features vary by product and carrier.

6. Surrender Periods and Charges
Fixed Annuities typically include a surrender period, during which early withdrawals may be subject to fees. It’s important to understand the surrender schedule and any applicable charges before purchasing.

With a Fixed Annuity, the insurance company credits a fixed rate of interest to your account balance. This rate is typically locked in for a period such as 3, 5, or 10 years, depending on the contract.

• Some annuities offer a multi-year guaranteed annuity (MYGA) structure, which guarantees the rate for the full term.
   
• Others may offer renewal rate structures, where the rate is guaranteed for one year at a time but never falls below a contractual minimum.
   

This predictable growth model is designed to give you peace of mind, knowing exactly how your money will grow during the accumulation phase.

Fixed Annuities may be suitable for individuals who:

• Prefer safe, steady growth without market exposure
   
• Desire tax-deferred savings for retirement
   
• Are looking for guaranteed income options
   
• Can leave funds untouched during the surrender period
   

However, they may not be ideal for individuals seeking high growth potential or who may need immediate access to their funds without incurring penalties.

• Fixed Annuities are insurance products, not bank deposits or securities.
   
• All guarantees are subject to the financial strength and claims-paying ability of the issuing insurance company.
   
• Withdrawals made prior to age 59½ may be subject to a 10% IRS penalty in addition to ordinary income taxes.
   
• Early withdrawals during the surrender period may be subject to surrender charges as outlined in the contract.
   
• Fixed Annuities are not FDIC insured, but they may be backed by state guaranty associations up to certain limits.

Carefully review the annuity contract and product disclosure documents. Speak with a licensed insurance professional to ensure the product aligns with your retirement and financial planning goals.

To learn more or to review available Fixed Annuity products, we invite you to:

• Compare multi-year rate options through our Explore & Enroll Platform
   
• Consult with a licensed advisor for personalized recommendations
   
• Request and download our guide to Fixed Annuities and guaranteed retirement income

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