Annuities

The Basics of Annuities

The value of Annuities

Annuities can help address one of your fundamental concerns: Outliving your savings. They can offer you guaranteed lifetime income payments*, which may give you freedom to fulfill your retirement dreams and help with your financial peace of mind. They also give you flexibility to use your cash however you choose.

An annuity may be right for you if…

You’re nearing retirement or
you’re already retired

You thought saving for retirement was the hard part. Now you need a steady retirement income.

You’d like to minimize the taxesyou pay
on your annuity earnings**

You don’t need the money right now. So, you’re looking for a way to accumulate funds while deferring tax payments.

You’re looking for an alternative to a
certificate of deposit

You want your money to work hard for you. So, you’re looking for something with the potential for higher returns.

Two basic types of annuities

Income Annuities

Income annuities can provide you a guaranteed*, reliable income stream that you can’t outlive. If you’re nearing retirement age or are already retired, income annuities can help supplement your income through a series of payments throughout your lifetime or for a specific period of time.

Deferred Annuities

Deferred annuities can help you accumulate assets for retirement by offering you a fixed rate of return and tax-deferred growth. And with deferred annuities, your investment will never decline in value.

What annuities can offer

Guaranteed, reliable income*

One of the most difficult problems in retirement is determining how much income you’ll need. Annuities provide reliable income that you can
use however you wish.

Tax-deferred growth

Taxes on annuity earnings are deferred until you begin taking money out***. That may help you minimize the
amount of tax you pay.

Flexible income options

Everyone’s situation is different. Annuities offer income options and choice of frequency so you can select
what’s right for you.

How annuity payment can be used

How you use your annuity payment is up to you. Many people use the money to:

Pay everyday living expenses
Supplement Social Security payments or other income sources
Fund a grandchild’s education

Contribute to charity
Purchase other insurance products
And much more

Ready to get started?

* Guarantees are subject to the claims-paying ability of the issuing insurance company.
** Consult with a professional tax and/or legal advisor before taking any action that may have tax or legal consequences.
*** Withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and if taken before age 59 1/2 may be subject to a 10% IRS penalty.

Medicare
supplement Insurance

Medicare Supplement covers things that Original Medicare doesn’t, like copays, deductibles, and coinsurance. It does all this with a steady, predictable, monthly bill you can budget for. And it can’t be cancelled. It will be renewed for as long as you pay your premium
on time and make no material misrepresentation.

You can add a Prescription Drug Plan and a Dental plan to Medicare supplement
insurance to get even more coverage.

You have to get Medicare Supplement Insurance through a private insurer. You’ll have to pay a monthly premium and depending on the plan you may also have copays.

Medicare Supplement Insurance may be a great fit for you if:

• You want more coverage than original Part A and Part B.
• You’d rather pay a monthly, predictable bill than have to pay out of pocket for an unexpected medical bill.
• You want the freedom to see any doctor who accepts Medicare.
• You want to be able to travel abroad with the confidence you will be covered.1
• You want insurance that can’t ever be cancelled.†

†As long as the premiums are paid on time and
there has been no material misrepresentation.

*Medicare supplement plans do NOT include
Medicare Part D prescription coverage.

Medicare Advantage-Part C

Medicare Advantage combines the coverage of Part A and B – Original Medicare, plus extra benefits. Many plans include prescription drug coverage as well as dental and vision care. Some plans have no copays for most labs or tests. And some even have extra benefits like gym memberships and transportation.

Most plans offer $0 premiums, but you do have to pay your Part B premium. Most plans have copays for treatment. And you’ll continue to pay your Part B premium. Medicare Advantage plans have a yearly limit for out-of-pocket costs you have to pay. Once you reach that amount, you won’t pay more for any of your Medicare costs, your plan will cover it. Different plans have different maximums.

Medicare Advantage plans work all by themselves. They replace Medicare Parts A and B and because of this all-in-one approach, you don't pair them with Medicare Supplement policies.

Medicare Prescription Drug Plan-Part D

Part D covers your prescription drugs and is a great addition to pair with Medicare supplement insurance. You probably won’t need it if you get Medicare Advantage since most Medicare Advantage plans include it. Just remember, which prescriptions are covered depends on which plan you get.

You have to get your Prescription Drug Plan through a private insurer. You’ll pay the monthly premium and a yearly deductible. You'll also pay a coinsurance (a percentage of the cost for your prescriptions) or a copay (a flat fee for some of your prescriptions’ cost). It is important to verify that all of your prescriptions are included in the plan formulary.