Saving for retirement using an annuity can be a great option in every market environment.
Annuities give your employees the potential to grow their retirement nest eggs. If they are participating in a 403(b) or 457(b) plan, contributions to the annuity are tax-deferred, meaning it goes in before they pay taxes on it and any growth is tax-deferred. They only pay taxes when they take distributions. (when they may be in a lower retiree tax bracket).
Volatile Times Call for a Guaranteed Retirement Option
In these volatile times and when markets are in decline, you can rest assured that annuities issued by National Life Group insurance companies will never lose their premiums paid or interest earned due to market changes. Our indexed annuity policyholders haven’t lost a penny of their policy value to market volatility* and can enjoy the peace of mind by having a guaranteed ** means to save for their retirement!
But did you also know there are different kinds of annuities?
Deferred Income Annuities (DIA) take a single premium or recurring contributions and defer your payout to a later date such as retirement.
Single Premium Immediate Annuities (SPIA) take a lump sum premium and start paying you out consistent payments for a certain period of time or for life depending on the contract.
Variable Annuities do not pay a fixed crediting rate, instead they track the performance of an identified sub-accountwhich fluctuates based on the ups and downs of the market. These annuities have greater growth potential, but can also lose money.****
Fixed Indexed Annuities are the annuities offered by Life Insurance Company of the Southwest (LSW). These annuities credit interest based in-part on a market index up to a certain level or cap when the index is up for the crediting period. They also have a “fixed” floor so they are guaranteed not to lose a penny due to market changes* when the underlying index is negative for the crediting period.
Our Fixed Indexed Annuities come with other benefits too!
Security of stable lifetime income never to be outlived by you (and your spouse if you choose that option), and/or guaranteed for a certain period depending on how you would like to receive your payments. There are many flexible options available at retirement, including a death benefit for your beneficiaries.
- Simple – fixed annuities are a simple way to save for retirement with recurring contributions and guaranteed payouts at retirement without worrying about the effects of the stock market.
- Potential – fixed indexed annuities have the potential to credit more interest than a traditional fixed annuity since crediting is based in-part on a market index.***
- Deferred tax treatment – a tax-deferred strategy allows you to defer paying taxes on contributions and growth of your retirement plan. Then when you retire and start taking distributions, you will pay taxes, but you may be in a lower tax bracket, paying lower taxes on your distributions.
- Premium and earnings guaranteed – the premiums paid and interest earned in fixed and fixed indexed annuities are guaranteed not to decline due to market changes.*
- Guaranteed Lifetime Income – annuities have been traditionally valued as retirement products because they are designed to provide guaranteed income for life. Some of our annuities also offer income riders that provide additional flexibility to start and stop income and provide access to the remaining cash value.**
- No Sales Charges – unlike many investment products, fixed and indexed annuities have no sales charges.
Contact us to learn more about how you can get Fixed Indexed Annuities from the insurance companies of National Life Group added to your plan today!
*Assuming no withdrawals during the withdrawal charge period. Rider charges continue to be deducted regardless of whether interest is credited.
**Guarantees are dependent on the claims paying ability of the issuing company.
***Fixed indexed annuities do not participate in any stock or equity investments. Money allocated to an index strategy will earn 0% interest in any interest crediting period where the index declines, but contracts generally guarantee a minimum interest rate over the life of the contract.
****Variable annuities can be offered solely by representatives registered to offer such products through a broker/dealer by way of prospectus. Investing involves risk, including the potential for loss of principal. The insurance companies of National Life Group do not issue variable annuities.
Variable annuities are sold by prospectus. For more complete information, please request a prospectus from your registered representative. Please read it and consider carefully a product’s objectives, risks, charges and expenses before you invest or send money. The prospectus contains this and other information about the investment company.
TC126330(0422)1
