About Annuities
Annuity is not life insurance, but a way to accumulate money and liquidating an estate. An annuity is a contract that provides income for a specified period of years, or for life and it protects a person against outliving his or her money. Annuities are often purchased as a supplement retirement income.
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Types of Annuities:
Fixed Annuities - guaranteed, fixed payment amount.
Equity Indexed Annuities - interest rate is tied to the index; earns higher rate than fixed and is less risky than the type below.
Variable Annuities - payment is not guaranteed; premiums are invested in stocks and bonds.