An annuity allows a customer to deposit money (premiums) with an insurance company that can earn interest and grow on a tax-deferred basis with the agreement that the insurance company will then provide a series of payments back to the customer at regular intervals.
- People typically purchase annuities to provide or supplement retirement income they will receive from Social Security, pension benefits, investments and other sources.
- You can convert your annuity into a stream of income that can then be paid over a fixed period or for your lifetime.
- You can take withdrawals of varying amounts when you need the income.
There are generally two different types of annuities:
- Immediate - Provides income payments that normally begin within a year after the premium is paid.
- Deferred - Provide income payments that begin later, often after many years. Deferred annuities are designed for long-term savings purposes.
- Available to purchase using a single lump sum, or with flexible premiums over time.
- When it comes time to take income from your deferred annuity, you will have many options available to meet your needs.
Fixed Interest Rate Annuities
1. Guarantees are based on the claims-paying ability of the issuing company.
2. Standard & Poor’s®, “S&P®, S&P 500®, Standard & Poor’s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the product.
Guarantees are dependent upon the claims-paying ability of the insurer and do not protect the value of the variable product portfolios, which may fluctuate. Variable contract holders are subject to investment risks, including the possible loss of principal invested.
Variable contracts are sold by prospectus. For more complete information, please request a prospectus from your registered representative. Please read it and consider carefully a Fund's objectives, risks, charges and expenses before you invest or send money. The prospectus contains this and other information about the investment company.
National Life Insurance Company and Life Insurance Company of the Southwest, both members of National Life Group, offer various types of annuities, each designed to help meet specific personal and business needs and objectives. If you would like more information, please contact us.
Variable contracts are underwritten by National Life and distributed by Equity Services, Inc., Registered Broker/Dealer Affiliate of National Life Insurance Company, One National Life Drive, Montpelier, Vermont 05604.