Annuity Advantages Interest rate advantage Tax advantage Savings advantage Safety advantage Estate planning advantage No more 1099     Interest rate advantage: Fixed annuities usually pay a significantly higher interest rate than certificates of deposits (CD’s) or saving accounts. Back to Top Tax Advantage: NO taxes are due while your money is compounding. Tax deferral gives you control over an important expense - your taxes. Any time you control an expense, you can minimize it. The longer you can postpone this particular expense, the greater your rate or return will be when compared to the rate of return you would have with a fully taxable account. By postponing taxes with a tax-deferred annuity, your money compounds faster because you can earn interest on dollars that otherwise would have been paid to the IRS You can also pay a lower tax on random withdrawals because you control the tax year in which the withdrawals are made, and only pay taxes on the interest withdrawn.   The power of tax-deferral illustrated:   Tax-deferred account:  Taxable account:  Initial contribution: $ 100,000  Initial contribution: $ 100,000  Interest rate: 6 %  Interest rate: 6 %  Balance after 10 years: $ 179,085  Balance after 10 years: $ 152.643  Taxes due (28 % tax-bracket): $ 11,863  Taxes due: 0  Balance after taxes: $ 167,222  Balance after taxes: $ 152,643 ANNUITY ADVANTAGE: $ 14,579 Back to Top Savings advantage: Annuities allow for the deferral of the taxes due on the interest earned until the interest is withdrawn. By postponing taxes with a tax-deferred annuity, your money compounds faster because you can earn interest on dollars that otherwise would have been paid to the IRS. Later, if you decide to take a monthly income, your taxes can be less because they will be spread out over a period of years. Like Certificates of Deposits (CD’s), annuities have a penalty for early surrender, however most annuity contracts have a liberal "free withdrawal" provision Back to Top Safety advantage: Annuities are issued by reputable insurance companies and fully backed by the insurance company’s assets. A qualified legal reserve life insurance company is required to meet its contractual obligations to you. These reserves must, at all times, be equal to the withdrawal value of your annuity policy. In addition to reserves, state law also requires certain levels of capital and surplus to further increase policyholder protection. Legal reserve refers to the strict financial requirements that must be met by an insurance company to protect the money paid in by all policyholders. These reserves must be at all times, equal to the withdrawal value (principal plus interest less early withdrawal fees, if any) of every annuity policy. State insurance laws also require that a life insurance company must maintain certain minimum levels of capital and surplus, which provide additional policyholder protection. Back to Top Estate planning advantage: Annuities can avoid probate. If a premature death should occur, the accumulating funds within your annuity may be transferred to your named beneficiaries, avoiding the expense, delay, frustration and publicity of the probate process. CD’s, saving accounts and other assets do not allow for the assignment of a beneficiary, thus leaving the door open for probate and estate taxes. Like most assets, the annuity is part of your taxable estate. Your heirs may choose to receive a lump sum payment, or a guaranteed monthly income. Estate taxes can exceed 50%; this does not even include income taxes. Probate is a lengthy, public process which may take years and opens the door for “inheritance scavengers”. Back to Top No more 1099’s: You will not receive any 1099’s while your annuity is compounding. NO taxes are due while your money is compounding. Tax deferral gives you control over an important expense - your taxes. Any time you control an expense, you can minimize it. The longer you can postpone this particular expense, the greater your rate or return will be when compared to the rate of return you would have with a fully taxable account. By postponing taxes with a tax-deferred annuity, your money compounds faster because you can earn interest on dollars that otherwise would have been paid to the IRS. You can also pay a lower tax on random withdrawals because you control the tax year in which the withdrawals are made, and only pay taxes on the interest withdrawn.

Annuity Quotes :
Annuity Quotes are available for Alabama , Alaska , Arizona , Arkansas , California , Colorado , Connecticut , Delaware , District of Columbia , Florida , Georgia , Hawaii , Idaho , Illinois , Indiana , Iowa , Kansas , Kentucky , Louisiana , Maine , Maryland , Massachusetts , Michigan , Minnesota , Mississippi , Missouri , Montana , Nebraska , Nevada , New Hampshire , New Jersey , New Mexico , New York , North Carolina , North Dakota , Ohio , Oklahoma , Oregon , Pennsylvania , Puerto Rico , Rhode Island , South Carolina , South Dakota , Tennessee , Texas , Utah , Vermont , Virginia , Washington , West Virginia , Wisconsin , Wyoming .