Are You Considering an Immediate Annuity?
Anticipating and preparing for your needs in retirement is critical to ensuring your financial security.
Annuities are contracts in which you pay a set amount of money in exchange for a stream of income at some point in the future. Annuities offer the peace of mind that comes with knowing you’ll have financial stability in retirement—as long as your annuity payments cover your expenses.
There are generally two kinds of annuities—fixed and variable. Fixed annuities are relatively simple and guarantee to pay you a locked interest rate for a defined period of time. Variable annuities are more complex investment vehicles that do not guarantee a return, but rather provide a market-based return with the risk of loss.
Additionally, annuities are created in one of two basic ways—immediate or deferred. An immediate annuity is an insurance contract in which you invest a lump sum of money today and start receiving periodic payments immediately. You can start receiving a stable, locked income right away and you never need to worry about monitoring your investment. Immediate annuities can also allow you to defer taxes until later in retirement because you only pay taxes on the earnings you receive as part of your periodic payments at the time when you receive them. Your remaining principal continues to earn interest tax-deferred. Deferred annuities are created in a similar way—some amount of principal is accumulated either through lump sum or through periodic investment over time—but that principal is held and the annuity is deferred, earning interest until you need the stream of income. At that point your annuity payments are based on your principal investment and the interest you’ve earned, resulting in higher periodic income payments.
Are you thinking a deferred annuity is what you really need? Check out Wealth Builder Life Insurance.
Get a Better Solution with ANNUITYLife®
ANNUITYLife® is a safe and affordable way to get secure, lifetime income from your retirement savings, without the concerns you might have about traditional immediate annuities. You won’t have to worry about running out of money in retirement again. Before you annuitize, you can redeem your money at any time with no charges from AAFMAA.
ANNUITYLife is not a traditional immediate annuity—it’s better. Here’s how:
- No upfront fees, commissions or hidden charges.
- You’re in control. Annuitize immediately and earn 3%.
- You’ve got options. Before you annuitize, you have whole life insurance coverage with a long-term care settlement option at no additional cost and you can get back all of your initial investment with no surrender charges from AAFMAA.
- You get exclusive AAFMAA Membership benefits.
- You get the benefit of being part of an organization that exclusively serves Veterans and their families.
ANNUITYLife is a Modified Endowment Contract (MEC). A MEC is a tax qualification of a life insurance policy where premiums are paid into a life insurance policy more quickly than normal, usually less than seven years. Since MECs grow tax-deferred and have a tax-free death benefit, they are seen as a beneficial alternative to traditional annuities.
It's More Than an Immediate Annuity. Enjoy All the Rewards of AAFMAA Membership.
With ANNUITYLife from AAFMAA, you get all the benefits of AAFMAA Membership, including our exclusive Survivor Assistance Services. After you pass away, your loved ones get the dedicated support of an expert Survivor Assistance Counselor in navigating the complex process of receiving all the entitlements and benefits you earned from your military service. AAFMAA will be with your survivors for life.
You’ll also get your own online Digital Vault in the AAFMAA Member Center to store your essential documents efficiently and securely, at no additional cost to you. Not to mention, if you pass away prior to annuitizing your policy, your survivors will receive the face value death benefit, tax-free, because ANNUITYLife is whole life insurance until you annuitize.
Download the ANNUITYLife Brochure to print or share more information about this better solution for your immediate Annuity needs with your loved ones.
Think you might not want to annuitize? Learn more about AAFMAA’s Wealth Builder Life Insurance, which may be another option for you.
Choose ANNUITYLife to protect your financial future. Start your application online or by phone when you speak to an expert AAFMAA Membership Coordinator at 866-716-4579.