Life Insurance & Annuities  (Closed) Annuities (Closed)

Annuities are contracts between and insured and an agency that provides them a fixed payment to accrue money for retirement that will allow them to get a fixed (sometimes variable) payment when the annuity matures. There can be two different types of deferred annuities: a fixed and variable. The fixed annuity is when they know what the interest rate will be for a certain period of time, and that interest is applied to the money in the annuity account.

One key thing to remember when presenting annuities to your client is that both qualified and non-qualified annuities are tax-differed. A non-qualified policy only requires you to pay taxes when you take money out of the policy. On qualified plans (like an IRA) contributions made to the plan can be tax-deductible in addition to being tax-differed.