Annuities for Income (convert life insurance into income*)

An Immediate Annuity is a contract that generates regular benefit payments (monthly, quarterly, semi-annually or annually), starting within 12 months of the annuity purchase. You select the specific starting date for your benefit payments. Immediate annuities are also referred to as "payout annuities." They are always purchased with a single premium (which can come from savings, IRAs, existing annuities, or existing cash value life insurance*).

Like all annuities, they offer a tax-deferral advantage in that your interest earnings are only taxed when you receive them. When the income is received part of it is a return of your principal and part is interest – meaning that only part of the payment is taxable. The amount that’s taxable will differ depending on your age

This income can be paid over a period of time (5, 10, 15, 20 years, etc.) or over your lifetime. Many people are only familiar with the “life only” option which pays the annuitant for as long as they live – whether that’s 60 days or 60 years. Don’t be scared away because there are many ways to structure an annuity. We’ll recommend one that’s right for you.