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Deferred Annuities

An annuity is a retirement contract between an individual and a life insurance company. Historically, an annuity was only used as a guaranteed source of income. In today’s market, annuities have become a popular solution not only for retirement planning, but also for wealth accumulation.

One of the greatest features of an annuity is the security of never losing your initial principle or any of the interest gains you have accumulated! There are two types of fixed annuities, described below.

The Fixed Annuity offers a guaranteed return, much like a CD at a bank. Unlike a CD, however, the interest that is earned grows tax-deferred. Rates vary, but will generally be higher than any other savings vehicle of its kind because of the longer term of the contract, which could be anywhere from 1 year to 12 years in length.

The Indexed Annuity, like a Fixed Annuity, allows a person to put their money into a vehicle that is secure, however, an Indexed Annuity has the possibility of earning more interest than a Fixed Annuity. This is because the returns are based off of a leading index, like the S&P 500, where the account holder shares in the potential gains of the market while being assured that the initial investment will not go down in value. Also, once interest is credited to your annuity value, it cannot be lost.

Because every insurance company is different, and rates constantly change, it is imperative that you work with a trained annuity professional. Promark Financial leads the industry in providing the best annuity strategies tailored to your situation and only works with leading, A-rated or better companies.