Annuities

Annuities

Protect and grow your retirement savings

While traditional life insurance guards against “dying too soon,” an annuity, in essence, can be used as insurance against “living too long.” In brief, when you buy an annuity (generally from an insurance company, that invests your funds), you in turn receive a series of periodic payments that are guaranteed as to amount and payment period. Thus, if you choose to take the annuity payments over your lifetime (keep in mind that there are many other options), you will have a guaranteed source of “income” until your death. If you “die too soon” (that is, you don’t outlive your life expectancy), you will get back from the insurer far less than you paid in. On the other hand, if you “live too long” (and do outlive your life expectancy), you may get back far more than the cost of your annuity (and the resultant earnings). By comparison, if you put your funds into a traditional investment, you may run out of funds before your death.

The earnings that occur during the term of the annuity are tax-deferred. You are not taxed on them until they are paid out. Because of the tax deferral, your funds have the chance to grow more quickly than they would in a taxable investment.

Many people worry about whether their savings will last the life of their retirement. The annuities we offer have a way to protect your retirement savings while providing an additional source of retirement income.

The annuities at FDR Financial offer you: 

  • Financial security—your principal is always safe from market loss
  • Access to top rated companies
  • Large premium deposit bonuses
  • Growth potential—accumulate interest with traditional fixed and fixed indexed options
  • Tax-deferred interest accumulation
  • A variety of income options, including guaranteed lifetime income
  • Death benefit paid to beneficiary

Indexed Universal Life (IUL)

IUL

 If you’re looking for a product that offers death benefit protection and the opportunity to build long-term cash value accumulation, an Indexed Universal Life (IUL) may fit your needs. An IUL policy will provide security today with the cash value growth potential you need for tomorrow.

Commonly known as IUL’s, which are designed to be permanent life insurance policies. Clients can borrow against the accumulation portion of their policy and never have to pay the money back until death. Keeping the policy in force for life allows the beneficiaries to receive the death benefit, plus any balance of the policy, tax-free. Perhaps most importantly, accessing cash via policy loans within an IUL are tax free to the insured during their lifetime, and can be a tremendous addition to a retirement income plan. The index, and the way the investment portion of the policy is designed varies from policy to policy, so our financial advisers examine each policy closely to find the right match for you.

Key benefits

Premium flexibility

The ability to increase or decrease premiums in the future to accommodate your budget or cash flow needs.

Death benefit flexibility

The option to adjust the policy’s death benefit should your life insurance protection needs change in the future.

Builds cash value

Accumulates valuable long-term cash values for future cash needs such as helping fund a child’s college education, paying off your mortgage early, funding a business opportunity or supplementing retirement income.

Tax advantages

Life insurance death proceeds are paid out income-tax free and the IUL policy’s cash values accumulate tax-deferred, an important feature when you consider how taxation can have an adverse effect on your savings growth potential.

Favorable loan feature

The ability to access the IUL policy’s cash value tax-free through policy loans allows you to maximize your cash needs without sacrificing valuable life insurance protection. (Loan balances will reduce the death benefit.)

Customizable

The option to design an IUL policy that reflects your particular needs and situation.

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