Here's How it Works
You purchase an annuity with a portion of your investable assets. This is called a purchase payment.
The insurance company issues you a contract that explains the terms of the annuity.
The insurance company invests your money which allows your money to grow at a fixed rate of interest.
At some point in the future, you can choose to receive annuity payments through annuitization.
Fixed annuities are best for those: • Looking to accumulate money for retirement at a fixed interest rate over a period of time. • Wanting portfolio diversification with a conservative investment. • Desiring protection of their assets from market risk. • Seeking guaranteed lifetime income through annuitization.
5
Made with FlippingBook - Share PDF online