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Brevard Insurance Brokerage represents:
Allianz    Transamerica    Legacy   West Coast Life    Aviva
Forethought   ING,   Genworth   Sun Life Company   RBC   North American Company   Lincoln Benefit    American National

Fixed Annuties

What is an Annuity?
An annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums you have paid. Annuities are most often bought for future retirement income. Only an annuity can pay an income that can be guaranteed to last as long as you live.

A deferred annuity has two parts or periods. During the accumulation period, the money you put into the annuity,  less any applicable charges, earns interest. The earnings grow tax-deferred as long as you leave them in the annuity. During the second period, called the payout period, the company pays income to you or to someone you choose.

Fixed Annuities
During the accumulation period of a fixed annuity, your money earns interest at rates set by the insurance company or in a way stated in the annuity contract. The company guarantees that it will pay no less than a minimum rate of interest  During the payout period, the amount of each income  payment to you is generally set when the payments start and will not change. 

Equity- Indexed Annuities
This is a very popular fixed annuity, either immediate or deferred, that earns interest or provides benefits that are linked to an external equity reference or an equity index. The value of the index might be tied to a stock or other equity index. One of the most commonly used indices is Standard & Poorís 500 Composite Stock Price Index (the S& P 500) which is an equity index.. The Equity -Index Annuity is different because of the way it credits interest to the annuityís value They use a formula based on changes of the index to which the annuity is linked. The accrued interest becomes the principle which the value is maintained and never goes down, even in a stock market decline. The many formulas and features offered decide how the additional interest you get and when itís credited to your annuity. When credited this interest becomes principal and cannot be lost. Itís a great vehicle for accumulation in times of market uncertainty.

Call us and find out about the latest features of fixed annuities including bonus and guaranteed returns.

Who Owns Annuities?
Who owns annuities? The 2009 Gallup Survey of Owners of Non-Qualified Annuity Contracts reports that the Americans who have chosen this retirement savings option have moderate incomes (64% have annual household incomes below $75,000, and 80% have annual household incomes below $100,000). Most non-qualified annuity owners are female (58%), and retired (69%).  Although their average age is 70, the average age at which owners purchased their first annuity was 52.

Why do Americans own annuities? According to the 2009 Gallup Survey of Owners of Non-Qualified Annuity Contracts, annuities are seen as a way to provide their owners with additional retirement income (76%) and as a financial safety net in case they or their spouse live well beyond their life expectancy (83%).

What do owners think about how important tax deferral is to saving for retirement? Most non-qualified annuity owners believe that they have done a very good job of saving for retirement (91%).  Almost nine in ten non-qualified annuity owners agree that keeping the current tax treatment of annuities is a good way to encourage long-term savings (88%), and more than four in five agree that annuities are an effective way to save for retirement (86%).