Protect long-term savings
Some fixed and fixed-index contracts protect principal from negative market performance during accumulation, subject to the contract terms.
Long-term income and retirement planning
Understand annuities before choosing one.
An annuity can support certain retirement and income goals—but the details matter. We help you compare options, understand the tradeoffs, and make a more informed decision.
Start with the purpose
What is an annuity?
An annuity is a long-term contract between you and an insurance company.
You make a payment or series of payments. In return, the insurer provides benefits defined by the contract, which may include tax-deferred accumulation, a death benefit, or income now or later.
Annuities are not all alike. Interest-crediting methods, income options, fees, withdrawal rules, surrender periods, and guarantees can differ substantially.
Annuity carriers we work with
Contracts from established insurers.
Because contract terms differ so much between companies, we compare offers from more than one carrier before recommending anything.
Product availability varies by carrier and state, and this list may change. Any guarantee depends on the claims-paying ability of the issuing insurance company. Company names and logos belong to their respective owners and appear here only to identify the insurers whose contracts we can present.
Common planning goals
Reasons people explore annuities.
A goal can start the conversation. The contract details determine whether a particular product actually fits.
Plan for future income
Annuities may offer several ways to turn part of your savings into scheduled or lifetime income.
Accumulate tax-deferred
Earnings generally grow tax-deferred until withdrawn. Tax treatment depends on the contract and how it is funded.
Add beneficiary options
Many contracts include a death benefit, although the amount and conditions vary by product.
Two options to understand
Fixed and fixed-index annuities.
Fixed annuity
The insurer credits interest at a rate described in the contract. The rate may be guaranteed for a set period and then reset, subject to a stated minimum.
- Interest does not depend directly on a market index
- Contract terms state the guaranteed minimum
- May offer current or future income options
- Withdrawals can be subject to surrender charges
Fixed-index annuity
Interest credits are linked in part to the performance of an index, but the contract is not a direct investment in that index or in the stock market.
- Negative index performance generally does not create a negative interest credit
- Caps, participation rates, or spreads can limit credited interest
- Some periods may receive no interest credit
- Withdrawals can be subject to surrender charges or adjustments
Product availability and features vary by insurer and state. Guarantees apply only as stated in the contract and depend on the issuing insurance company’s financial strength and claims-paying ability.
Why work with us
Education first. No one-size-fits-all answer.
Choosing an annuity can be confusing. We slow the process down and help you compare what each contract actually says.
- Compare options from multiple insurance companies
- Understand benefits, limits, costs, and tradeoffs
- Match product features to your retirement goals
- Receive personal guidance with no obligation to purchase
Frequently asked questions
Clear answers to start with.
Is my principal protected?
Fixed and fixed-index annuities generally protect principal from negative market or index performance during the accumulation period. Withdrawals, surrender charges, contract adjustments, and other contract terms can still reduce the amount you receive. All guarantees depend on the issuing insurer’s claims-paying ability.
What happens if the stock market drops?
A traditional fixed-index annuity is not a direct investment in the stock market. A negative index result generally does not create a negative interest credit, but you may receive no interest for that period. Contract withdrawals and charges can still affect value.
Are annuities taxable?
Earnings generally grow tax-deferred and are taxed when withdrawn. Early withdrawals may also face a federal tax penalty. Because tax rules depend on your circumstances and can change, ask a qualified tax professional about your situation.
Can an annuity provide lifetime income?
Many annuities offer annuitization or optional income features designed to provide payments for life. The payment amount, access to remaining contract value, fees, and beneficiary treatment depend on the option selected.
Can I access my money whenever I want?
Annuities are designed for long-term goals. Many contracts permit limited withdrawals, but taking money out during a surrender period may trigger charges or adjustments. Review the liquidity rules before purchasing.
Learn from independent sources
Take time to understand the contract.
These consumer resources explain common annuity features and questions to ask before buying.
Ready to learn more?
Let’s compare your options and questions.
Every retirement plan is different. Start with a brief, no-obligation conversation.
Annuities are long-term insurance products and are not bank deposits. They are not insured by the FDIC or any other federal agency. Withdrawals may be subject to surrender charges, contract adjustments, ordinary income tax, and a federal tax penalty if taken before age 59½. Optional benefits and riders may carry additional costs. Key Health Solutions provides insurance information, not legal, tax, or investment advice. Consult the contract and appropriate professional advisers before making a decision.