What is an annuity? An annuity is a financial contract between you (the owner of the contract) and an insurance company that guarantees you regular payments over the lifetime of the annuitant, typically in the form of a check or an automatic deposit made to your bank account. Annuity income can be a welcome supplement to other forms of income in retirement, such as Social Security payments, retirement plan distributions and earned income—helping you enjoy a more comfortable future. • The accumulation period is the period of time in which earnings on your premium are accumulating on a tax-deferred basis and you are not receiving income. • The payout period begins when you start to receive your money back plus interest in the form of monthly income and can last as long as you live. It’s impossible to outlive your income when you purchase an annuity and choose a life income option. Interest is accumulated on a tax-deferred basis in your annuity until you begin your payout period. When you begin your payout period, your insurance company starts paying you back the money you’ve contributed to your annuity plus interest in regular installments. The insurer will then continue to make payments as long as you live, helping you make the most of your retirement years. What will your fixed annuity earn? At Reliance Standard Life Insurance Company, you’ll receive a competitive, guaranteed initial interest rate for one or more years. After the initial guarantee, Reliance Standard will declare a new interest rate each year, which will never be lower than the guaranteed minimum rate. You may also receive a bonus interest rate for the first year of your contract. The interest rate you earn after the initial guarantee of your contract is a key consideration when shopping for an annuity. Your insurance professional can help you evaluate interest rate histories and give you insights into which insurers have a strong track record of crediting favorable interest rates to policy owners. At Reliance Standard Life Insurance Company, we are proud of our excellent reputation in the industry for offering fair and competitive interest rates. To learn more about interest bonuses, interest rates and minimum guarantees, ask your insurance professional for a detailed Reliance Standard Life Insurance Company annuity product fact sheet.
Why choose a fixed annuity?
Annuities are long term financial contracts designed to help secure your financial future by providing you with a predictable, guaranteed income stream. The major benefits of fixed annuities are: • Guaranteed growth — Your interest rate during the accumulation period of your contract has a guaranteed minimum, established by Reliance Standard. • Stability of principal —Your annuity cannot lose value as long as your insurer remains financially solvent and you do not withdraw your annuity value prematurely. Keep in mind that an annuity is a long-term contract, so surrender charges may apply if you take withdrawals before the end of the surrender charge period. • Tax deferral —Your annuity earnings accumulate tax-deferred until you begin making withdrawals, helping your annuity potentially grow faster over time since interest will accumulate on the amounts you would have ordinarily paid in income taxes. • Guaranteed lifetime income — Your annuity guarantees that you can receive payments as long as you live, providing you with increased security and peace of mind.
RS-2329-TM
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