Annuities

Future financial planning can be intimidating. How will you guarantee your income stream will support your preferred standard of living once you retire? Annuities can make planning for a comfortable retirement more predictable with customized options that meet your future financial needs and goals.

For over 25 years, Peterson Insurance has made it simple for Pennsylvania residents to find the right annuity for responsible planning of their financial futures. We are here to help! Read on to learn more about different types of annuities.

What are Annuities?

An annuity is a financial contract issued (and backed) by an insurance company. Annuities are long-term, tax-deferred investments designed to offer you a guaranteed future income stream, typically during retirement. They can be purchased in one lump sum or paid periodically. Payouts may be immediate or deferred based on your financial situation and goals.

Annuities can be customized to suit your needs, like when your annuity payouts start, if you want your annuity to help pay for long-term care, whether you want payments to transfer to a beneficiary after you pass, and more. Let’s discuss in more detail the different types of annuities available to help you better understand which option might be best for you and your family.

Different Types of  Annuities

Immediate Annuity

An immediate annuity is the most basic type of annuity that is paid out immediately (within one year) after purchase. How long an immediate annuity lasts depends on how much you contribute, and how often you receive your payouts.

Deferred Annuity

With a deferred annuity, your tax-deferred contribution grows over time (accumulation period), only to be paid out beginning on a set future date (the payout period).

Fixed Annuity

A fixed annuity is an annuity option with a guaranteed principal and rate of return. Fixed annuities are ideal for individuals who want a specific level of guaranteed income during retirement.

Variable Annuity

A variable annuity has the potential to rise and fall based on the investment portfolio backing it. Variable annuities can increase or decrease in value, depending on the market.

Equity-Indexed Annuity

An equity index annuity is a unique annuity with characteristics of a fixed and variable annuity. Equity-indexed annuities earn interest based on the returns of a stock market index (like the S&P 500), with a guaranteed rate of growth set annually.  With an equity-indexed annuity, you are guaranteed a minimum interest rate, with the potential to earn a higher return than what is available with a traditional fixed annuity.

Peterson Insurance: Pennsylvania’s Annuity & Life Insurance Experts

With so many annuities and life insurance options, it can be challenging to decide which is right for you. Don’t go it alone–the life insurance experts at Peterson Insurance are here to help!

We offer more than 20 years of independent insurance experience helping local small businesses and residents like you find the best insurance plans for all of life’s events. Contact Peterson Insurance to find out which annuity or life insurance plan is right for you and get your FREE annuity quote today!