Guaranteed, predictable growth
A fixed annuity guarantees a fixed interest rate, or an interval of payments, over a specific period of time.
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Annuities
Annuities 101
As you think about your financial future, have you wondered how you can ensure you’ll have regular income payments you won’t outlive? If you can earn a competitive rate of return, defer taxes and protect your assets? Or if there’s a way you can protect your loved ones from a large tax burden down the road? An annuity may be the right solution to help you achieve these goals.
What is an annuity?
An annuity is a contract between you and an insurance company. Purchasing an annuity can help ensure you have the financial resources you need to enjoy retirement on your terms.
Annuities offer
- Tax-deferred growth
- Guarantees
- Access to all or a portion of your funds
- Flexibility for certain needs or circumstances
The basics
How does an annuity work?
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1
Contribute
You pay a lump sum or a series of payments.
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2
Accumulate
Your contributions grow on a tax-deferred basis until you take income from the annuity.
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3
Receive distributions
You receive a guaranteed stream of payments starting immediately or in the future.
Annuities for every phase of retirement
Annuities offer the potential for tax-deferred growth during the accumulation phase, and can provide guaranteed¹ lifetime income during the income phase. Depending on your goals, you may choose an annuity designed to prioritize growth or one built to generate income.
¹ Guarantees are based on the claims-paying ability of EquiTrust Life Insurance Company.
Fixed annuity vs. fixed index annuity
Growth linked to market indices
A fixed index annuity (FIA) is designed to grow your retirement savings through interest earned based on market indices. Your money is never exposed to downside market risk.
Explore fixed index annuities