Annuities in Greenville, SC
What Is an Annuity?
An annuity is a contract between a person and an insurance company that can be used as part of a retirement strategy. The benefits of an annuity include tax-free growth, income for life, principal-protected growth, and legacy for beneficiaries. Most insurance companies have added additional benefits. These include increase in value if long term care is needed. Also, guaranteed added growth for lifetime income benefits or death benefit. These annuities are either a fixed annuity or a fixed index annuity.
Fixed annuity earns a fixed rate of interest every year regardless of market. It is guaranteed. Fixed index annuity is typically responsive to one of the indices, more often the S&P 500®.
A variable annuity is similar in design but typically cannot protect value. The reason is most are made up of stock and bonds. When these values go up, the variable annuity value goes up. If these values go down, the variable annuity value goes down. Most require fees.