Annuities

    Annuities have become very popular today. They pay higher rates than CD's and defer taxes. Many people have difficulty understanding annuities. Annuities are financial contracts with an insurance company. The annuity offer's tax-differed growth and is designed to be a source of retirement income. Like a CD you can place a lump sum of money in an annuity. You must leave the money in for a period of years, usually between two to ten years. The longer you leave the money in the higher your interest rate will be. Depending on the annuity purchased, a yearly amount is allowed to be withdrawn without a penalty. This amount is usually around 10%.

    An annuity is a simple contract. You give the insurance company money, in exchange the insurance company promises to either pay you an interest rate on your money so your money grows like a savings account or the insurance company can immediately start paying you a monthly income starting and lasting for a period of time.

    Independent Life Insurance Service agents utilize several well known insurance companies and based on your objectives are able to recommend one that best suits your financial needs.