Why annuities may be a good investment

Imagine the possibilities for growth

Over time, annuities can accumulate with the advantage of tax-deferred growth. It lets you:

Principal, interest and capital gains may accumulate tax free until you withdraw and take receipt of them; the benefit is that, when you withdraw during retirement, you're likely to be in a lower tax bracket.

By delaying taxes until withdrawal, your account can retain more value; by deferring taxes, you can use the power of compound interest to boost the base of your account with each passing year; over time, it can add up to more retirement wealth.

As a result, the government typically limits your access to withdrawals until after you're 59 1/2. Any earlier, and there's a 10% early withdrawal penalty.

Some annuity options offer growth potential. Here's how:

Some investments are beyond reach because minimum investment amounts are too high; annuities can help because you're in a larger group of investors.

You may be able to exchange between investments without fees or tax consequences.

You can manage your investments yourself or use a money manager — it's your choice.

Annuities are uniquely designed to be able to provide you with lifetime income options, legacy planning and spousal opportunities.

Achieved through the use of annuitization at no cost or via a lifetime income benefit rider available for an additional cost.

Most annuities have a return of premium standard death benefit (your beneficiary gets back what you put in at a minimum); however, you have the opportunity to purchase enhanced death benefit riders that could increase the amount left to loved ones.

You're able to cover the life of your spouse on your annuity, either on a death benefit or a lifetime income benefit; please note that some carriers may charge a fee for these services.

Plan for what - and who - matters most

You can pass your assets to beneficiaries while avoiding the costly probate process. Married couples can also choose spousal protection.

Spousal protection offers security for both of you. With spousal protection, your Mr. or Mrs. is protected in the event that you pass away first. Your spouse then has the flexibility to choose: