Affordable Insurance Solutions LLC Columbia SC Personal Insurance Personal Insurance Business Insurance Business Insurance Make A Payment Make A Payment
Copyright 2013 - Affordable Insurance Solutions, LLC - 3604 Fernandina Rd Columbia, SC 29210 - 803-798-5754 Web design by Complete PC LLC
**The information, pictures, and other content in this website about particular insurance services is only provided for informational purposes. Any decisions regarding your insurance needs should be discussed with a licensed insurance agent.
Get A Quote!!!

Annuity FAQs

Fixed (Tax Deferred Annuity)

A fixed tax deferred annuity, also referred to as a tax-deferred annuity, is a contract between you and an insurance company for a guaranteed interest bearing policy with guaranteed income options. The insurance company credits interest, and you don't pay taxes on the earnings until you make a withdrawal or begin receiving an annuity income. Because fixed annuities invest your premiums in interest bearing obligations, you receive a lower return in comparison to equity indexed annuities, since interest rates historically trail stock market returns.

Tax Deferred Annuity Advantages - Savings

Many people today are using a tax deferred annuity as the foundation of their overall financial plan. By postponing the taxes your money compounds faster because you can earn interest on dollars that would have otherwise been paid to the IRS. Later, you can decide to take a monthly income and your taxes will be less because they were spread out over a period of years. An annuity has a penalty for early surrender but most annuity contracts have a limited withdrawal provision that permits the contract owner to withdraw a certain percentage each year without a surrender charge.

Tax Deferred Annuity Advantages - Taxes

You pay no taxes while your money is compounding. You can also pay a lower tax on random withdrawals because you control the tax year in which the withdrawals are made and only pay taxes on the interest withdrawn.

Fixed (Immediate Annuity)

A fixed immediate annuity, also referred to as a fixed payment annuity, provides you with a stream of income payments from your original purchase payment. The amount of your income payouts is determined by the guaranteed interest rate and the payout option you select. A fixed immediate annuity can begin benefit payments as early as one month and no later than 13 months from the date of purchase and is intended for investors who need a guaranteed income stream to begin soon.

Equity Indexed Annuity

An equity indexed annuity offers you a guaranteed minimum return with the potential to earn additional interest based on the performance of a securities market index. Equity indexed annuity returns are tied to indexes of market activity and not to the performance of individual stocks or funds.   The equity indexed annuities we offer are tied to the following indexes: S&P 500*, Dow Jones Index Acct.*, S&P MidCap 400*, NASDAQ*, and the Russell 2000*.   A equity indexed annuity will guarantee you a minimum interest rate (often about 3% on 90% of your investment) while offering the potential of higher rates by tying your return to a portion of the return of an index, such as the ones mentioned above. You are offered a percentage of how much the index gains over a period of time (not including dividends, which accounted for about 30% of the total return of the S&P 500 for the last 20 years) and a guaranteed minimum return if the stock market declines.