There are three types of annuities: fixed interest, fixed indexed and immediate.

• A fixed interest annuity helps you accumulate funds for retirement. The money in your annuity earns a guaranteed fixed interest rate. Plus, your money accumulates tax deferred, which means you don't pay income taxes on earnings until you actually withdraw them from our policy.
• A fixed index annuity has the same guarantees as a fixed interest annuity, but it offers an additional opportunity to earn interest based on the performance of a market index. You're not actually participating in the market, so the money in your annuity is never at risk of decreasing.
• An immediate annuity is purchased with a single lump-sum payment. In exchange, the annuity pays you a guaranteed income stream that can begin immediately.

An annuity can help you:

• Protect your principal.
• Avoid probate in most cases.
• Have guaranteed income for life.
• Gain potential protection against creditors, claims, lawsuits, bankruptcies and more.

Plus, annuity payouts do not affect your Social Security benefits.

Annuities offer guaranteed income for life, whereas CDs offer no lifetime income, and have limits for deposits. While CDs are generally considered safe investment vehicles, fixed annuities usually offer better rates, guaranteed minimum earnings and the option to extend those earnings and benefits of tax-deferred growth to your family members.

Fixed annuities offer a benefit of tax-deferred income. The interest your annuity earns (under current tax law), accumulates on a tax-deferred basis. This means that while your annuity is earning interest and you're not withdrawing money, you don't pay taxes on interest. You pay taxes only when you take money out of your annuity or you start receiving payments. Because taxes are not paid on the gain of your annuity while it's growing, your earnings grow faster and build more funds to use during retirement.