ANNUITY - Nature Insurance

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How Annuities Fit in Your Investment Plan?
Are you worried about outliving your income? That’s a risk  that you may be able to do something about. When you invest in an  annuity, you set the stage to receive income in the future, subject to  the terms, conditions and or limitations of the insurance contract.
An annuity is a long-term contract you purchase from an  insurance company. It is designed to help accumulate assets to provide  income for retirement. Annuities do have limitations. If early  withdrawals occur penalties may apply and earnings are taxable as an ordinary income and may be subject to a 10% federal tax penalty if  withdrawn prior to age 59½.

How do annuities work?
An annuity is a long term investment that is issued by an  insurance company designed to help protect you from the risk of  outliving your income. Through annuitization, your purchase payments  (what you contribute) are converted into periodic payments that can last  for life.

Annuities can be Flexible
  • Invest a lump sum or invest over a period of time
  • Start receiving payments immediately or at some later date
  • Select a fixed, variable or indexed rate of return

Investing involves risk and may lose value. All guarantees and  protections are subject to the claims paying ability of the issuing  company, but the guarantees do not apply to any variable accounts which  involve investment risk and possible loss of principal.

What type of annuity could fit into your investment plan?
Whether your needs are immediate or long-term, you can choose the type of annuity whose features work for your situation:
  • Variable – With a variable annuity, you  choose investments and earn returns based on how those investments  perform. You can choose investments that offer different levels of risk  and potential growth, depending on your investment goals and tolerance  for risk.

    Variable annuities are sold by prospectus. Before you  invest, please read the prospectus carefully and consider the investment  objectives, risks, charges and expenses of the annuity and its  underlying investment options before you invest. Prospectuses for  products and underlying investment options contain this and other  important information. To obtain prospectuses, call your investment  professional or the insurance company.
  • Immediate – An immediate annuity is usually  purchased with a lump-sum and guaranteed income starts almost immediately. Your investment converts into a guaranteed stream of income  that is irrevocable once payments begin. In some situations, funds can  be accessed, but some restrictions apply.
  • Fixed – With fixed annuities, the principal  investment and earnings are both guaranteed and fixed payments are made  for the term of the contract.
  • Fixed Indexed – This special class of  annuities yields returns on contributions based on a specified  equity-based index, such as the S&P 500.

    A fixed indexed annuity offers returns based on the changes in a securities index, such as the S&P 500®  Composite Stock Price Index. Indexed annuity contracts also offer a  specified minimum which the contract value will not fall below,  regardless of index performance. After a period of time, the insurance  company will make payments to you under the terms of your contract.

    A fixed indexed annuity is not a stock market investment and does not directly participate in any stock or equity investment.
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