Annuities 101

Learn how annuities can help you create a steady, reliable income stream and approach your retirement with confidence.

What is an annuity?

An annuity is a contract between you and an insurance company designed to help you grow and protect your savings.

Backed by the financial strength and claims-paying ability of the issuing company, annuities are one of the only stable-money products that can both guarantee the protection of hard-earned dollars and generate income that cannot be outlived.

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What are the main benefits of an annuity?

Annuities can help you prepare for retirement by growing future income and protecting it from market volatility and risk.

Growth potential

Take advantage of index-linked strategies for growth with annual reset and lock-in features without directly investing in the market.

Risk management

Protect your principal, interest, and gains from the risk of potential market uncertainty — even during economic downturns.

Tax deferral

Pay no taxes until withdrawal. Watch your interest earnings increase and ensure more of your money continues working for you.

Steady income

Receive a guaranteed and predictable stream of income that you won’t outlive to reduce financial stress and build security.

How annuities work

You make a one-time payment or a series of payments to an insurance company, and in return, the company provides guaranteed income — either for a set period or for the rest of your life. Depending upon the type of annuity, your money may grow at a fixed rate or based on market performance, all while remaining tax-deferred until you withdraw it. When your distribution payments begin, they will be made based on your age, the annuity’s accumulated value, and other factors.

When might an annuity be right for you?

You’re saving for retirement. An annuity can be an attractive retirement planning option that grows tax-deferred.

You’re not sure your savings will last in retirement. Annuities can provide a guaranteed income for the rest of your life, even if you live to be over 100.

You’re hoping to leave a legacy. With an annuity, you can provide for your loved ones in the event of your death.

Choose the type of annuity that works for you

Fixed index annuities (FIA)

Take advantage of a powerful combination of benefits that allow for potential index-linked growth, principal protection, tax-deferred growth, and guaranteed income over a specific period — including the option for lifetime income.

Fixed annuities

Protect your principal, get increased access options and tax-deferred growth, and take care of loved ones. The fixed annuity allows the accumulation of interest based on a fixed rate determined at the beginning of the contract.

Ready to add an annuity to your retirement strategy?

Understand what you’ll need

Explore your annuity options and how each can uniquely support your retirement goals.

Talk to a financial professional

Discuss your options, get personalized guidance, and choose a strategy tailored to your needs.

Purchase an annuity

Lock in your annuity contract, select the features that fit your needs, and set your retirement strategy in motion.

Watch your money work

Earn interest and tax-deferred growth as you build value, income, and confidence for your retirement years.

This material is for informational purposes only, and is not a recommendation to buy, sell, hold or rollover any asset. It does not take into account the specific financial circumstances, investment objectives, risk tolerance, or need of any specific person. In providing this information Eagle Life Insurance Company is not acting as your fiduciary as defined by the Department of Labor. Eagle Life does not offer legal, investment or tax advice or make recommendations regarding insurance or investment products. Please consult a qualified professional.