Important Annuity Disclosures

Multi-Year Guaranteed annuities and Fixed Indexed annuities are issued by insurance companies. All benefits, payments and guarantees are subject to the claims paying ability of the individual insurance company selected.

Annuities do not have FDIC insurance like bank accounts or many CDs.

Annuities are a way to accumulate money for retirement on a tax-deferred basis and create a guaranteed stream of income for life. An annuity is a long term investment. It is not intended to meet short term financial needs or goals.

Annuities rates vary by state. Not all annuities are available in all states.

Annuities do not charge an up-front sales charge. 100% of your premium deposit earns interest.

Instead, annuities typically have deferred sales charges that are only assessed when withdrawals greater than allowed annually are taken. These deferred sales charges are only assessed if the owner chooses to make such a withdrawal.

The amount of "free withdrawal" allowed annually and potential deferred sales charges are clearly outlined in an annuity illustration.

Many annuities also have a Market Value Adjustment (MVA) that can lower or increase any deferred sales charge as defined in the annuity contract. In general terms, the potential sales charge increases if interest rates are higher at the time of the withdrawal compared to the annuity's issue date. If interest rates are lower at the time of withdrawal, the potential charge may be lowered.

Some annuities have optional riders available for an annual charge. Be sure to understand exactly what benefit is provided and if that benefit makes sense for you. Also understand the long-term cost of rider charges.

Insurance companies determine if an annuity application meets their "suitability guidelines". These guidelines vary by company.

The insurance company will ask for information on your finances: your household income, net worth, liquid net worth, source of funds, investment time horizon, goals for this money, etc.. Your identity will be confirmed with government ID, like a drivers license.

You will be provided with a copy of the NAIC Guide to Fixed and Index Annuities at the time of application.

We are paid a commission to sell an annuity. You never pay any of our compensation- that is paid entirely by the insurance company.

We do not provide tax or legal advice. Seek tax and legal advice from your own professionals.