Protection With a Purpose.

Fixed deferred annuities, including Single Premium Deferred Annuities (SPDAs) and Multi-Year Guaranteed Annuities (MYGAs), can offer predictable interest rates, contractual principal protection, and tax-deferred accumulation. Depending on the contract, interest rates may be guaranteed for a specified period or reset periodically.

These products may be worth comparing with CDs, Treasury securities, and other fixed-income alternatives when evaluating interest rates, liquidity, and tax treatment.

Income annuities can provide a predictable stream of payments, similar to a traditional pension. Single Premium Immediate Annuities (SPIAs) typically begin payments within one year, while Deferred Income Annuities (DIAs) begin payments at a future date.

Lifetime income payments are calculated using actuarial assumptions, including life expectancy, interest rates, and selected payout features. By pooling longevity risk across policyholders, insurers can provide income that continues for life, even if you live longer than expected.

In exchange, these contracts typically limit access to the original premium, making liquidity needs and payment options important considerations.

Fixed indexed annuities credit interest based partly on the performance of a market index, such as the S&P 500, without directly investing in that index. They generally protect against losses caused by negative index performance while offering the potential to earn interest when markets rise.

Participation rates, caps, spreads, and other contract features can limit returns. Withdrawal restrictions and surrender charges may also apply.

Registered index-linked annuities offer market-linked return potential with defined levels of downside protection. Depending on the contract, buffers or floors may limit certain market losses while allowing participation in market gains.

Unlike traditional fixed indexed annuities, RILAs expose investors to investment losses, including potential principal loss. Returns are subject to contract provisions, participation rates, caps, and other limitations.

Variable annuities offer investment options within an insurance contract, allowing account values to fluctuate with market performance. Earnings generally accumulate tax-deferred, and some contracts offer optional lifetime income or death benefit guarantees.

Variable annuities can experience investment losses and may involve insurance charges, investment expenses, rider fees, and surrender restrictions. Their costs and benefits should be evaluated against other investment alternatives.

A Qualified Longevity Annuity Contract (QLAC) is a specialized deferred income annuity (DIA) purchased within an eligible retirement account. It provides income beginning later in retirement, helping address longevity risk.

QLACs also offer specific required minimum distribution (RMD) treatment, allowing qualifying premiums to be excluded from the account balance used to calculate RMDs before income begins. Contribution limits and IRS requirements apply.

Hybrid long-term care annuities combine an annuity contract with benefits designed to help pay for qualifying long-term care expenses. Depending on the contract, they may provide enhanced benefits for covered care needs while retaining certain annuity benefits if care is never required.

These products can be alternatives to traditional long-term care insurance, but eligibility requirements, benefit limits, liquidity restrictions, and costs should be evaluated carefully.