Simply put, an annuity is a contract in which an insurance company makes a series of income payments at regular intervals in return for a premium or premiums you have paid. Annuities are most often bought for future retirement income. Only an annuity can pay an income that can be guaranteed to last as long as you live. Annuities can help protect against outliving your earning years or your retirement resources. Compound interest is credited to these payments and the earnings are not currently taxed during the accumulation period, which is an important reason why people purchase annuities.
Annuities have advantages in a number of situations:
Farmers Life® offers several different types of annuities based on structure, risk and rate of return to assist prospects in meeting specific retirement, financial or business goals. Contact your local Farmers agent for more information.
Annuities issued by Farmers New World Life Insurance Company, Mercer Island, WA 98040-2890.
This document is for informational purposes only. You should consult your attorney, accountant, or tax advisor for legal or tax advice.
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