There are many different kinds of annuities to choose from. Many New York Life annuities can provide a stream of income to last the rest of your life.
An annuity is the only financial product that can provide a guaranteed* stream of income. By making a lump-sum payment or series of payments—you can receive guaranteed payments (sometimes called distributions or income payments) for a specified term, up to and including income for life.
Immediate annuity, deferred income annuity, fixed deferred annuity—you’ve got lifetime income options.
Annuitieshave a whole host of names, based on benefits and issuing companies, but at their core, they are best understood by their time line (immediate or deferred) and market exposure (variable).
Immediate annuity—income for life starts now.
If you’re looking to turn a lump sum of cash into a stream of income right away, animmediate annuitymay be right for you. Sometimes referred to as an income annuity or a single premium immediate annuity (SPIA), an immediate annuity lets you immediately turn a lump sum of money into a guaranteed stream of income.
How much does an immediate annuity cost? There’s typically a minimum purchase amount, but ultimately, it depends on how much you’re willing to purchase. As with all annuities, the payout you receive depends on the lump sum you start with, any additional payments you make, the annuity’s payout rate, your gender, and your age when you begin receiving income.
Deferred income annuities—more time means more income.
Adeferredincome annuity begins distributing payments at a future date of your choice. Typically, you make a single lump-sum payment (or a series of payments) and wait until you’re ready to start receiving income. The longer your money has time to grow, the higher the income payments will be.
Fixed deferred annuity—safe and secure growth.
Fixed deferred annuities, also known as fixed annuities, provide stable, guaranteed growth. This makes them particularly attractive to folks looking for a way to protect assets for future retirement needs while still enjoying modest growth.
Fixed annuities can be purchased with a lump sum of money. They offer tax-deferred growth at a guaranteedinterest ratefor a specified period of time.
The money within a fixed annuity grows tax-deferred, but withdrawals made during this time period, but this specific time period (which varies by issuer and contract) is known as the surrender charge period and any withdrawal amount over the annual withdrawal limit is subject to a surrender charge. Once your surrender charge period has ended, you will have full access to your money. Typically, the surrender charge decreases over a number of years.
Variable annuities—more growth potential with built-in protections.
If you’re looking to tap into potential equities growth, and are willing to accept the market’s ups and downs, a variable annuity may be for you. The benefit of variable annuities is that they offer more opportunity for growth with access to riders which can be purchased to provide principal protection, or an enhanced death benefit, for example, —depending on the specific annuity you purchase. These optional features have additional costs.
The value of a variable annuity is based on the performance of an underlying portfolio of market investments. Variable annuities have the advantage of providing more choices in the way your money is invested. This market exposure may be needed if you’re looking for the opportunity to grow your retirement nest egg. Keep in mind that variable annuities are subject to market risk, including possible loss of principal.
Get more from a company that offers more.
Choice, benefits, and peace of mind are just three reasons why you should consider purchasing an annuity from New York Life.
OurGuaranteed Lifetime Income AnnuitiesandLifetime Mutual Income Annuitiescan provide secure income now.
OurGuaranteed Lifetime Income Annuities,Future Mutual IncomeAnnuities, andClear Income Fixed Annuitiescan help you grow your savings and benefit from a stream of lifetime income when you’re ready to retire.
Our agents are here to answer any questions and help you find the right solution. Plus, with our history of more than 175 years of making prudent decisions and our consistently highratingsforfinancial strength2you can rest assured that we will be there when you need us—today, and for the long haul.
Annuities contain certain fees, risks, limitations and restrictions; Please speak with a financial professional for costs and complete details. Withdrawals may be subject to ordinary income taxes and, if made prior to age 59½, may be subject to a 10% IRS penalty; Surrender charges may also apply.
Please consider the charges, risks, expenses, and investment objectives carefully before purchasing a variable annuity. The prospectus contains this and other information and can be obtained from a financial professional. Read the prospectuses carefully before you invest or send money.
Annuity products are issued by New York Life Insurance and Annuity Corporation and its parent company, New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. All guarantees are dependent on the claims-paying ability of the issuer. Available in jurisdictions where approved.
Variable annuities are offered by NYLIFE Securities LLC, Member FINRA/SIPC, a licensed insurance agency and New York Life company.
Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professionals before making any decisions.
*The guarantees of life insurance are based solely on the claims-paying ability of the issuer. Guarantees remain in place as long as all premiums are paid.
2Individual independent rating agency commentary as of 10/15/20. A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+)
