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| Frequently Asked Question |
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Which type of annuity should I choose? |
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There is no single annuity that fits everyone. Choose the one that best reflects your financial goals, your stage in life, your financial means and your comfort with risk. No matter what your financial goals are, however, you can probably find an annuity that suits you. The first question is whether you want a deferred or an immediate annuity. |
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If you are accumulating funds for retirement, you probably want a deferred annuity. With this you will not be drawing any income from it until retirement. |
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If you want to convert a lump sum into a stream of income, you probably want an immediate annuity.
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A fixed-rate annuity might be appropriate for you if you prefer minimal risk or already have part of your holdings in higher risk investments. It is usually considered a wise choice for people who value a bit of stability in their financial holdings or want to know the exact return on the annuity purchased. |
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A variable annuity might suit you if you have a higher tolerance for risk or are eager to stay involved and are educated in market investment strategies. |
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The equity-indexed annuity falls somewhere between fixed-rate and variable annuities in terms of risk and potential reward. An equity-indexed plan offers the potential for higher returns than a fixed-rate annuity but less risk than a variable product. |
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