Annuities and Benefits


Annuities can be an important part of any investment portfolio and long-term income goals. There are many types of annuity products to consider, depending on clients’ current investment and insurance goals.


What is an Annuity?


Annuities are contracts between an individual and an insurance company to create a regular income, usually during retirement. This process involves the individual making one lump-sum premium payment or a series of payments for the insurance company’s annuity. In return, the insurance company makes regular disbursement payments according to the terms of the contract. Annuitization is the process of converting the value of the annuity contract into payments made by the insurance company to the individual for a guaranteed income stream, usually for the rest of their life.


Types of Annuities and Their Benefits


Annuities payments are made from tax-deferred funds which, accrue like 401(K) contributions. Unlike your 401(K), contributions to the funds do not reduce your taxable income, and payments received from the annuity are considered regular taxable income instead of capital gains. These funds cannot be drawn before age 59½ without penalty.

We work with two varieties of Annuities with their pay-out potential and risks involved:

Fixed – They are predictable because they pay out a guaranteed amount, which can be modest, only slightly more than a bank certificate of deposit (CD.)

Indexed – Similar to varied types, but with less risk and less potential pay-off. They provide a middle-ground between Fixed and Varied. They are also prone to higher fees.

EverVest services can provide independent brokers with a wide variety of annuity choices and training and education regarding available annuity products and services. Contact us today to find out how your insurance broker business company might benefit from the products, resources and services we offer.