Insurance companies are forced to set aside $1 for every $1 invested into annuities. Banks fail many times because they take $1 and make $10 in loans that go bad. Annuities don’t do this. In addition, with Fixed and Fixed Index Annuities your money is never directly in the market, you cannot lose principal due to market losses.
#2 Guaranteed For Life
Annuities can fill in the gaps when social security, pensions, and other retirement accounts don’t provide enough retirement income. Annuities allow you to take a lump sum today and create a steady stream of income paid monthly, quarterly, or yearly. You can start your income now or anytime in the future.
#3 Reasonable Returns
Traditional fixed annuities provide a safe alternative to bank CD’s and savings accounts with much higher returns. Some uncapped index annuities may give you 100% of the market’s upside with zero percent of the market’s downside. This is very attractive to the conservative investor avoiding market losses.
#4 Tax-Deferred Growth
Annuities offer triple compounding. Earn interest on your principal, interest on your interest, and interest on the money normally lost to taxes.
#5 Long Term Benefits
Some annuities offer 200-300% of your initial deposit in long-term care benefits with an optional rider. There is no cost, and everyone qualifies regardless of health.
#6 Leave A Legacy
All proceeds upon death go to named beneficiaries of your choice from family members, to churches or charities.
#7 No Fees
Many fixed, indexed and income annuities have no fees whatsoever.
Some annuities offer upfront bonuses on deposits up to 10%. Example -invest $100,000 and receive a $10,000 bonus. Bonuses are usually attached to longer-term products which may or may not be right for your situation.