Annuities:
Understanding the Benefits
Annuities
Understanding The Benefits
An annuity is a contract with an insurance company that allows you to receive payments on a regular schedule. Typically, this agreement allows you to receive payments for the rest of your life. An annuity might offer you the choice between monthly, quarterly, or annual payments. Individual details vary by contract. Furthermore, there are different types of annuities. Fixed annuities and fixed indexed annuities (FIAs) do not lose money when the market is down. However, a variable annuity does come with this risk. Because one of our key values is the safety of the principal, we believe you should choose a product that gives protection. Furthermore, you should aim to earn a respectable rate of return.** An FIA can potentially provide you with both of these benefits. Interested in learning more? Contact us.
What is an FIA?
Fixed Indexed Annuity Benefits

An FIA provides the benefit of keeping your money safe.
An FIA’s interest rate is determined by the performance of a stock market index. However, it does not directly invest your money in the market: if the market rises, you may receive higher returns. However, if the market is down, you will not lose any money, guaranteed.* The insurance company sets aside a reserve to protect the money. The contract and the strength of the insurance company will protect you.
Phases of an Annuity
There are two main phases to an annuity contract: The accumulation phase, and the distribution phase.
These are important in understanding annuity benefits:
accumulation phase
During theĀ accumulation phase, you leave the money contributed to the annuity untouched so it can grow. During this time, it grows, tax-deferred, based on the performance of an index or multiple indexes.
distribution phase
TheĀ distribution phase begins when you withdraw money from your FIA. When you can begin taking payments will be specified in your own specific contract.
Interested in learning more about this product? Contact us.
We discuss it (among other things) at our informational seminar events. Or, if you want to get straight to the point, you could schedule a one-on-one meeting with Ness Financial. We can discuss your individual situation and determine whether or not an FIA is the right choice for you.