An annuity is a contract between you and an insurance company. You pay the insurance company a premium, in either a single payment or in several payments. The company then agrees to provide a fixed rate of return, which can be distributed to you over a selected period of time. Fixed and immediate annuities pay a fixed interest rate, while the return for variable annuities depends on the performance of the funds you choose.

Annuities provide the following advantages:

 Tax Deferred Earnings*—Generally, you do not pay income tax on your earnings until you withdraw the money or begin to receive annuity payments. Because the earnings accumulate tax deferred, your annuity has the potential to grow faster than would a taxable vehicle.

 Guaranteed Lifetime Income**—You choose the length of the payout period. There are various options available to choose from, including a life income option which guarantees payments for as long as you live. With the various options available, you can structure your annuity payments to fit your individual circumstances.

 Guaranteed Death Benefit***—Most annuities include a death benefit option which guarantees payments to your beneficiary if you should die before the annuity payments begin, or in some instances, before the payment period has ended, depending on the payment option you choose.