Wednesday, July 17, 2013

Annuities

Annuities from Liberty Life

Annuities from Liberty Life

Make The Most Of Your Retirement

What is a Fixed Deferred Annuity?

Not sure what a fixed deferred annuity is or how it can help you save for retirement? Here’s a good place to start.

Related Links

What is a Fixed Deferred Annuity?

Protection for your retirement savings

  • A fixed deferred annuity is designed to help you accumulate funds for your retirement in a safe and secure way.
    You purchase a fixed deferred annuity with either a single payment or a series of payments. Your money earns interest at a fixed rate that will never drop below a minimum rate guaranteed by the issuing company. That makes a fixed deferred annuity a safe choice for accumulating funds for retirement.
    Meanwhile, your money grows tax deferred, which means you don’t pay taxes on your earnings until you withdraw money from your annuity. The taxes you would normally pay on interest earnings stay in your annuity and compound to help the value of your account grow faster.
    Many annuities provide access to your money through penalty-free withdrawals. And, when you choose, you can turn the value of your annuity into a stream of income that will last as long as you live.
    If you’re looking for a way to protect your retirement savings and want to avoid investments tied to the stock market, a fixed deferred annuity may be the right choice for you.
    Learn more to help you decide if a fixed deferred annuity fits into your retirement plans.
    Life insurance and annuities issued by:
    Liberty Life Assurance Company of Boston, a Liberty Mutual company
    Home office: Boston, Mass. Service center: Dover, N.H.
Related Links

Annuities Made Easy

Key benefits of fixed deferred annuities

  • 1. Safety
    Unlike other types of annuities, the money in a fixed deferred annuity grows at a guaranteed minimum interest rate. That means your account value will never go down unless you choose to make withdrawals.
    2. The opportunity to generate a stream of income for life
    Fixed deferred annuities give you the choice to receive guaranteed payments for the rest of your life. This predictable income stream can help you plan for the goals you want to achieve during retirement.
    3. Tax-deferred growth
    The money in your annuity accumulates on a tax-deferred basis. That means you do not pay taxes on your earnings until you withdraw the money. Because of tax deferral, your money may grow faster in an annuity than it might in a similar, taxable investment.
    4. A guaranteed death benefit
    In the event of your death, your annuity’s account value will be paid directly to your beneficiary.
    5. Access to your money
    With most fixed annuities, you can access a portion of your money each year after the first year without any withdrawal charges. And after a certain length of time most fixed annuities will allow you to access your money whenever you choose or to receive automatic withdrawals without paying withdrawal charges. Finally, when you’re ready, you can turn the value of your annuity into a guaranteed stream of income that will last as long as you live.1
    6. Security
    Buying an annuity from a reliable company with a strong financial history gives you the confidence to know your money will be there when you need it.
    7. Simplicity and transparency
    With guaranteed rates and easy-to-understand payment options, fixed deferred annuities are one of the most straightforward retirement savings options available.
    8. Timed payments to minimize taxes
    To minimize taxes, you can time your withdrawals to begin in later years, when your taxable income may be less.
    Life insurance and annuities issued by:
    Liberty Life Assurance Company of Boston, a Liberty Mutual company
    Home office: Boston, Mass. Service center: Dover, N.H.
    1 Withdrawals taken before age 59½ may be subject to a 10% federal tax penalty as well as tax on any gain in the contract.
Related Links

Answers to Your Questions 

  • Contact a Local Agent
    Have questions about fixed deferred annuities? You’re not alone. Below are answers to some common questions.
  • Safety

  • What makes fixed deferred annuities safe?

    The money in a fixed deferred annuity grows at a guaranteed minimum interest rate. In contrast, the value of a variable annuity may be based on stock market performance. In a variable annuity, your money is not guaranteed to grow.
     

  • What interest rate will I earn?

    When you buy your annuity, you’ll receive the credited interest rate your company offers on the purchase date. After an initial guarantee period, the rate on your policy renews each year. Your rate will never fall below the minimum interest rate stated in your annuity contract.
     

  • How do I know I’m buying an annuity from a company I can trust?

    As with any big purchase, it’s helpful to research the company to ensure it has a solid, long-standing financial history with a conservative investment strategy. Insurance companies use their assets to guarantee your principal will always grow at a guaranteed minimum interest rate. Look for financial strength ratings on company websites to ensure you’re dealing with a reputable provider.
     
  • Tax-deferred growth

  • What are the tax advantages of a fixed deferred annuity?

    The money in your annuity accumulates on a tax-deferred basis. That means you do not pay taxes on your earnings until you withdraw the money. Because of tax deferral, your money may grow faster in an annuity than it might in a similar, taxable investment.
     

  • How is a fixed deferred annuity different from a CD I buy at my local bank?

    If you did not purchase your CD as part of your Individual Retirement Account (IRA), your earnings are taxable the year you earn them, even if you don’t take the money out of the CD. With fixed deferred annuities, your interest grows in your account and is not taxed until withdrawals begin – possibly giving you faster growth and control over when you pay the taxes.
    In addition, many annuities give you the option to withdraw a portion of your money annually without charges after the first year. If you need access to the money in your CD before it matures, you will likely have to pay a penalty.
     
  • Access to my money

  • Is there a way that I can access my money without penalties?

    On most fixed annuities, you can access a portion of your money each year after the first year without any charges.1 You will have to pay taxes on the money you withdraw. Some annuities may give you access to all of your money in the event of serious health conditions.
    After a certain length of time called the ‘surrender period,’ most fixed annuities will allow you to access your money whenever you choose, provided you meet minimum withdrawal requirements.
    You may also choose to receive automatic withdrawals on a regular basis, such as annually, quarterly or monthly. In those cases, you have complete control over the timing of payments, but you have no protection against outliving your money.
    Another option is to exercise an important benefit of fixed deferred annuities and turn your money into a guaranteed stream of income that will last as long as you live. If you choose this option, you will receive guaranteed payments for the rest of your life.
    1 Withdrawals taken before age 59½ may be subject to a 10% federal tax penalty as well as tax on any gain in the contract.
     

  • What if I die before I begin receiving my payments?

    In the event of your death, your annuity’s account value will be paid directly to your beneficiary.
  • Fees and withdrawal charges

  • What are withdrawal charges, and why do fixed deferred annuities have them?

    A withdrawal charge is a penalty you pay for withdrawing your money before a certain amount of time has elapsed. This amount of time is called the surrender period. The penalty, or withdrawal charge, is usually a percentage of your annuity’s value at the time of withdrawal.
    Since annuities are designed to be long-term investments, a withdrawal charge provides an incentive to keep your money with a company for an appropriate period of time. This consistency helps companies plan investment strategies, and in turn offer you, the annuity owner, the best rate possible on your money.
     

  • Are there any up-front or ongoing sales charges associated with a fixed deferred annuity?

    Unlike other types of investments, fixed deferred annuities do not have up-front or ongoing sales charges.
  • Life insurance and annuities issued by:
    Liberty Life Assurance Company of Boston, a Liberty Mutual company
    Home office: Boston, Mass. Service center: Dover, N.H.
Related Links

Annuity Product Comparison

  •  Builder AnnuityBalance AnnuityFoundation AnnuityFlexible Payment
    Premium Payments
    • One lump-sum premium payment
    • Minimum amount of $15,000
    • One lump-sum premium payment
    • Minimum amount of $10,000
    • One lump-sum premium payment
    • Minimum amount of $10,000
    • Periodic payments made annually, semi-annually, quarterly, or monthly.
    • Minimum initial payment of $250, minimum subsequent payments of:
       - $100 monthly
       - $250 quarterly
       - $500 semiannually
       - $1,000 annually
    Interest
    • Interest rate is guaranteed initially for four years
    • Interest rate is reset each year after initial period.
    • Interest rate is guaranteed initially for one or five years (you select your preference on your application).
    • Interest rate is reset each year after the initial period.
    • Interest rate is guaranteed initially for one or five years (you select your preference on your application).
    • Interest rate is reset each year after initial period.
    		Interest rates are credited to each payment.
    First-Year BonusNoYes. 1.00% extra interestYes. 0.25% extra interestNo
    Tax DeferredYes. You won’t pay taxes on the growth of the annuity until you withdraw money from the annuity.Yes. You won’t pay taxes on the growth of the annuity until you withdraw money from the annuity.Yes. You won’t pay taxes on the growth of the annuity until you withdraw money from the annuity.Yes. You won’t pay taxes on the growth of the annuity until you withdraw money from the annuity.
    Access to Your CashYes, through partial and systematic withdrawals1 and annuitizationYes, through partial and systematic withdrawals2 and annuitizationYes, through partial and systematic withdrawals2 and annuitizationYes, through partial and systematic withdrawals2
    Optional ModulesYes3
    • Extra Access
    • Extra Care and Protection
    • Extra Assurance
    		NoNoNo
    Life insurance and annuities issued by:
    Liberty Life Assurance Company of Boston, a Liberty Mutual company
    Home office: Boston, Mass. Service center: Dover, N.H.
    1 May vary by state. Up to 5% of the beginning-of-year account value may be withdrawn without withdrawal charges. Withdrawals taken before age 59½ may be subject to 10% federal tax penalty as well as tax on any gain in the contract. Clients should consult a tax advisor.
    2Up to 10% of the beginning-of-year account value may be withdrawn without withdrawal charges. Withdrawals taken before age 59½ may be subject to 10% federal tax penalty as well as tax on any gain in the contract. Clients should consult a tax advisor.
    3Modules may not be available in all states.
Related Links

Single Premium Deferred

One Payment – A Lifetime Of Guarantees 

Contact a Local Agent

With a single premium deferred annuity (SPDA), you make just one lump-sum premium payment in exchange for a guaranteed stream of income for your retirement years. Here is a brief overview of a SPDA:
    • A SPDA is funded by one payment.
    • With a deferred annuity, you get the power of tax deferral, which means your annuity value earns interest that won’t be taxed until it’s withdrawn.
    • As the interest accumulates, it in turn earns interest, compounding the growth each year.
    • You decide the period of time over which you wish to receive payouts from the annuity.1
    Single premium deferred annuities offered by Liberty Life:
    Life insurance and annuities issued by:
    Liberty Life Assurance Company of Boston, a Liberty Mutual company
    Home office: Boston, Mass. Service center: Dover, N.H.
    1Within the terms of your contract.
 
Related Links

Flexible Payment Deferred

Adjustable Features For Your Changing Needs 

  • If you are looking for guaranteed retirement income but don’t have a large amount of accessible cash, a Freedom Series Flexible Payment Deferred Annuity (FPDA)1 from Liberty Life may be right for you. Here is a brief overview of an FPDA:
    • An FPDA is funded by periodic payments made annually, semi-annually, quarterly or monthly
    • You decide how often you want to make the payments
    • Because FPDA payments are made over time, each payment has its own associated interest rate
    • The growth on an FPDA is tax deferred
    • You decide the period of time over which you wish to receive payouts from
      the annuity
    • A $30 contract fee will be assessed after the fifth contract year if the account value is under $5,000
    A Liberty Mutual agent can help you determine if an FPDA is right for you.
    Contact a Local AgentLife insurance and annuities issued by:
    Liberty Life Assurance Company of Boston, a Liberty Mutual company
    Home office: Boston, Mass. Service center: Dover, N.H.
 
  • Customer Login
    Pay your bills, report or track a claim, manage your policy.
Posted by at
Labels: , , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)