| FAQ's Tools
- Education
The Primary Reasons People Buy
Annuities
Safety of Principal! - Most people have
worked hard all their life accumulating their "nest-egg". They should not
put their money in risky investments, especially our senior citizens. Most
seniors are more concerned about the "return OF their money than the return
ON their money".
Annuities are
considered to be safe investments for the following reasons:
 | No market risk |
| Backed by the financial strength of large
life insurance companies who are required to set aside a portion of their
assets (reserves) to cover claims.
|
| They also spread their risk through the
industry’s reinsurance network, i.e. several companies share in a
particular risk. |
Tax Deferral -
Taxes are paid only when money is received. IRC
Section 72This results in a much faster
cash build-up. Your principal grows because you receive: 1) interest on the
principal; 2) interest on the interest; 3) interest on the money that
normally would have been paid in taxes.
Competitive Interest
Rates - At present, and historically, annuities outperform CD’s and
money market accounts.
Accessibility-
One of the biggest concerns, especially with seniors, is "Do I Have Access
to My Money, Should I Need It?" There are a number of choices:
| Withdraw interest as needed, monthly,
quarterly, etc. |
| Exercise
free withdrawal privilege |
| Total surrender |
| Annuitize (choose one of a number of income
options) |
Avoids Probate -
By naming a beneficiary, your annuity account is paid directly to a named
individual, making it accessible and eliminating probate costs.
Interest Rate Guarantees
- Almost all annuity contracts have minimum rate guarantees...the rate can
never go below a specified amount.
Current Income Reduction
- CD’s, money market accounts, savings accounts, etc. require current
taxation of interest earned even if it is not taken. Annuities are taxed
only upon receipt of interest.
Lifetime Income Option
- Annuities are the only investment vehicles available that guarantee you
cannot outlive your monthly payments
Avoid Risk and
invest in a tax deferred annuity! Your PRINCIPLE & INTEREST is FULLY
GUARANTEED at all times!!
You get:
| Triple Compounding |
| Tax Savings |
| No Fees or Load Charges
|
| Competitive Interest |
| Probate Avoidance |
| No Market Risk |
| Does not affect taxation of your
social
security |
| Liquidity (Ability to withdraw funds)
|
Source | 
