As American workers develop their financial plans many are looking for safety and guaranteed income as they approach and live through their retirement years. At LFIS we utilize fixed and fixed-indexed annuities as a solution for this client need.
Fixed Annuities provide a guarantee of principal as well as a guaranteed rate of interest and guaranteed retirement income that can be structured to provide predictable income that can never be outlived. There are many different versions of this simple product including Multi-Year Guaranteed Annuities, Single Premium Immediate Annuities, and Deferred Income Annuities.
Fixed-Indexed Annuities, or FIAs, provide a guarantee of principal and guaranteed interest just like Fixed Annuities. The key difference in the products is that a FIA allows a policyholder to participate in the returns of an external market index, such as the S&P 500, which oftentimes can be higher than interest rates on traditional fixed annuities. Simply, Fixed-Indexed Annuities offer:
Both products may offer Guaranteed Lifetime Withdrawal Benefit Riders, for an additional charge, that allow policyholders to receive a steady stream of retirement income that is guaranteed to last for the rest of their lives regardless of interest earnings or market index performance.