Who are you?
How can we help?

What is an Annuity?

 

An annuity is a contract between you and an insurance company.  Annuities are most often purchased with income for the future in mind.  Annuities have many benefits, including:

 

  • Ability to meet long-term financial goals, such as retirement
  • Guaranteed income for a specified period of time or even for life
  • Tax-deferred growth
  • Protection from market loss
  • Avoidance of probate in some cases*

 

In return for a premium you pay, an insurance company will make a single payment or a series of income payments either immediately or at some time in the future. 

 

Annuities have two phases – a deferral phase and an income phase

  • Deferral Phase: the time period between the inception of the contract and the date of the first distribution in which values accumulate on a tax-deferred basis
  • Income Phase:  the period of time in which income is withdrawn from the contract, which may be for a specified period of time or for your lifetime

 

*Neither Eagle Life Insurance Company® nor any of its representatives give tax, legal or investment advice. 
Consult a qualified advisor.

 

Who can sell annuities?
Annuities can only be sold by licensed insurance professionals who completed product specific training.  The insurance professional must be a representative of the insurance company and must hold a valid insurance license in your state.  Representatives are compensated by the insurance company.  No sales compensation is ever deducted from your annuity principal.


What is the tax treatment on annuities?
Under current federal law, annuities receive special tax treatment.  Income tax on annuities is deferred, which means you are not taxed on the interest your money earns while it stays in the annuity.  Earnings are taxable as ordinary income when distributed; and if withdrawn before you turn 59 ½, a 10% tax penalty may be enforced.   Neither Eagle Life nor any of its representatives are authorized to give tax advice.  You should consult a professional tax advisor to discuss your individual tax situation.

 

 

Eagle Life offers two types of annuities


Traditional Fixed Annuity
A traditional fixed annuity is a contract between you and Eagle Life.  Your fixed annuity includes:

  • A competitive interest rate declared by Eagle Life guaranteed for a specified period of time
  • A guaranteed minimum interest rate over the term of the contract
  • An interest rate that cannot drop below the guaranteed minimum rate established at the beginning of the contract
     


Benefits and Features of Our Traditional Fixed Annuity

  • Tax-deferred growth
    • Taxes are not owed on earned interest until a withdrawal is made from the contract
  • Competitive current and renewal interest rates
  • Systematic withdrawals of interest or amounts to satisfy the IRS minimum distributions are accessible immediately*
  • Penalty-free withdrawals of interest are available
  • Additional liquidity may be available if the annuitant is placed in a nursing home or diagnosed with a terminal illness (varies by state, product and issue age)

 

*Benefit not guaranteed and subject to change

 

Features and benefits may vary by product and state.  Please review the contract or product disclosure for more information.

 

Annuities are products of the insurance industry and are not guaranteed by any bank or insured by the FDIC.  Guarantees are based on the financial strength and claims paying ability of Eagle Life Insurance Company®.

 


Fixed Indexed Annuity
A fixed indexed annuity is a contract between you and Eagle Life where the potential interest earned is linked to an external equity or bond index.  The S&P 500® Index and the 10 Year US Treasury Bond are the most commonly used indexes.  In a fixed indexed annuity:

  • The values of an index can vary daily and certainly are not predictable
  • Your contract is backed by Eagle Life
  • You are not purchasing shares of stock, bonds or any indexes

 

Benefits and Features of Our Fixed Indexed Annuity

  • Tax-deferred growth
    • Taxes are not owed on earned interest until a withdrawal is made from the contract
  • Ability to choose how interest is calculated and which index is used
  • Systematic withdrawals of interest or amounts to satisfy IRS minimum distributions available immediately*
  • 10% penalty-free withdrawals after the first contract year
  • Each annuity contract gives you access to some of your money without a penalty after the first contract year
  • Lifetime Income Benefit***
    • The Lifetime Income Benefit Rider allows you to take a guaranteed lifetime income from your annuity without losing control of your retirement assets
  • Additional liquidity may be available if the annuitant is placed in a nursing home or diagnosed with a terminal illness (varies by state, product and issue age)
  • Surrender charges may apply for early withdrawal

What’s next?
Eagle Life is committed to providing a variety of fixed and indexed retirement products.  Our annuities are designed to provide you with flexibility of wealth accumulation opportunities, income choices and safety.  We understand that one product will not fit everyone’s individual financial needs.  We encourage you to talk your representative about an Eagle Life product.

*Benefit not guaranteed and subject to change.

**Not available on all products

 

Features and benefits may vary by contract form and state.  Please review the contract or product disclosure for more information.


Annuities are products of the insurance industry and are not guaranteed by any bank or insured by the FDIC.  Guarantees are based on the financial strength and claims paying ability of Eagle Life Insurance Company®.


The "S&P®" is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Eagle Life Insurance Company®.  Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); Standard & Poor’s®, S&P® are trademarks of the SPDJI; and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Eagle Life Insurance Company®.  Eagle Life Insurance Company's® fixed  indexed annuities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P.


Tax Interpretations:  Neither Eagle Life Insurance Company® nor any of its representatives give tax, legal or investment advice.  Consult a qualified advisor.