what are annuities
Low-cost, tax-deferred investing with the potential for guaranteed income.
A variable annuity is a tax-deferred investment vehicle that can provide your clients with a guaranteed death benefit and help them enjoy a steady stream of income during their retirement years. With your guidance, they can choose the product that is right for their investment style, and you can help them build a strategy that fits their goals and risk tolerance. And with a no-load variable annuity, your clients enjoy 100% liquidity from day one.
Variable annuities have two phases.
The deferral (accumulation) phase:
- Payments are made into the annuity policy, either as a single payment or multiple payments.
- Funds invested in the policy have the potential to grow tax-deferred. That means that any taxes your clients would have paid stay in the policy and have the potential to grow over time.
- Policy value is dependent upon the investment performance of the underlying investment options.
- If needed, there is a death benefit available to the beneficiaries during this phase.
The payout (income) phase:
- Systematic withdrawals can be established at any time to create an income stream for your client with automatic deposits going straight to their checking account.
- The policy can also be annuitized to create a guaranteed stream of income for your client. There are a number of settlement options.
- This phase can be structured in a number of ways depending on the needs of your client.
About Guaranteed Lifetime Withdrawal Benefits (GLWB2).
The GLWB2 rider helps provide your client with guarantees during both phases of the annuity by providing guaranteed growth during the accumulation phase and guaranteed income during the payout phase. The rider is optional for an additional charge when your client applies for an Ameritas Advisor No-Load VA.
Guarantees based on the claims-paying ability of the insurer.