What is an annuity and how do annuities work? Every retirement is different, each with its own financial goals and unique needs. But, many of today’s retirement objectives are the same—a reliable income source and asset protection. An annuity is a contract backed by the financial strength and claims-paying ability of the issuing company. This guarantees contract owners a retirement vehicle designed to protect assets while allowing for growth opportunities. The benefits of annuities: Guaranteed income Principal protection Tax-deferred growth Liquidity May avoid probate What is a fixed index annuity? A fixed indexed annuity provides principal protection with the potential of growth based on an external index. Interest earned is also protected from loss due to index fluctuations, leaving your retirement dollars in tact for the future. What is a traditional fixed annuity? A traditional fixed annuity protects your nest egg and provides interest accumulation based on a fixed interest rate determined at the beginning of the contract. What is an immediate annuity? An immediate annuity can provide steady income for a specific period of time or lifetime income that begins within 12 months of a signed contract.