Annuities

Regardless of your financial situation, it’s often a good idea to fortify your future interests with various assets, savings and investments. Whether you’re considering retirement or other financial needs, understanding the opportunities presented by annuities may be an invaluable step. At Allen Harmon Insurance, our dedicated team has the knowledge and experience to guide you through this topic.

How Annuities Work

Annuities are financial instruments that may help provide you and your family with a consistent and reliable source of income down the road. Many types of annuities have varying specifications and capabilities, but they generally act as investments. After purchasing an annuity, your funds are tucked away. They may then accrue value over time and can eventually be cashed out through a process called annuitization. At this point, your annuity may begin supplying consistent payments for a set number of years or even throughout the remainder of your life.

Available Types

Annuities may come in many forms. Understanding your options is critical to help you make investments according to your goals, needs and means. Consider the following common types of annuities and what each may have to offer:

• Fixed annuities are a relatively safe choice, as they include a minimum guaranteed interest rate and will not dip below the value of your initial investment.
• Variable annuities can offer a more aggressive approach, as these investments are tied to the stock market and may, therefore, gain greater value, albeit with more risk.
• Indexed annuities are tied to a market index (e.g., the S&P 500) and may be somewhat of a hybrid between fixed and variable options, providing more growth potential than the former but less than the latter.

Where to Get Them

Annuities are often sold by insurance companies. At Allen Harmon Insurance, we can help individuals and families in the Battle Creek area understand their options and make ideal selections. Contact us today to learn more.