Annuities
Guaranteed retirement income you can't outlive.
Quick answer
An annuity is a contract with an insurance company that turns savings into guaranteed income, either now or in the future. Fixed annuities pay a set rate, fixed indexed annuities link growth to a market index with downside protection, and income riders can provide payments for life.
- Types
- Fixed, indexed, income
- Growth
- Tax-deferred
- Income
- Can be lifetime
- Market loss
- Protected (fixed/indexed)
Who is annuities best for?
- Retirees wanting guaranteed lifetime income
- Protecting savings from market losses
- Rolling over a 401(k) or IRA
- Tax-deferred growth beyond retirement account limits
Pros and cons
Pros
- Guaranteed income for life options
- Principal protection on fixed and indexed annuities
- Tax-deferred growth
- No annual contribution limits
Cons
- Surrender charges during early years
- Caps limit upside on indexed annuities
- Withdrawals before 59½ may face IRS penalties
How much does annuities cost?
Fixed and fixed indexed annuities usually have no annual fees unless you add optional riders. Surrender charges apply if you withdraw more than the free amount during the surrender period.
Why buy through Varis Life?
Varis Life is an independent agency with access to every major carrier and licensed agents in all 50 states. We compare annuities options side by side so you get the best fit for your health, budget and goals.
Frequently asked questions
Are annuities a good idea for retirement?
Annuities are useful when you want guaranteed income or protection from market losses. They work best for part of a retirement plan, not all of it.
What is a fixed indexed annuity?
A fixed indexed annuity credits interest based on an index like the S&P 500, with a cap and a floor so you don't lose principal to market drops.
Can I roll my 401(k) into an annuity?
Yes. A direct rollover from a 401(k) or IRA into an annuity is not a taxable event when done correctly.
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