A non-qualified, tax deferred fixed rate annuity is only as guaranteed as the contract provisions outline and is only as good as the annuity insurance company that issued the contract. That being said, many financial stable annuity insurance companies offer a non-qualified tax deferred fixed rate annuities, generally at 5, 7 and 10 year periods.
A non-qualified, tax deferred variable annuity is separate sub accounts which use equity and bond instruments in variable annuities. Because these accounts are market driven you can lose money. Currently the variable annuity feature of the income rider is attractive for investors with an established risk tolerance. There are many competitive variable annuity contracts available.
I'm going to keep this simple and generic as we can spend a lot of time reviewing this question. First, what is an annuity? An annuity is simply a contract between you and an insurance company where they offer market like gains or guaranteed gains like in a CD over a length of time, usually anywhere from 3 to 15 years.
A fixed annuity simply means the money is not invested in the market although growth may be tied to gains but you will not get 100% of gain but you also will not see the losses either due to the downside guarantees.
A variable annuity invests money in the market with all the risks associated to market investing. There usually are death benefit guarantees where if you die before taking money out, the initial amount of premium is returned to your heirs.
Please contact a registered representative to get more details and a prospectus.
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A non-qualified, tax deferred variable annuity is separate sub accounts which use equity and bond instruments in variable annuities. Because these accounts are market driven you can lose money. Currently the variable annuity feature of the income rider is attractive for investors with an established risk tolerance. There are many competitive variable annuity contracts available.
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A fixed annuity simply means the money is not invested in the market although growth may be tied to gains but you will not get 100% of gain but you also will not see the losses either due to the downside guarantees.
A variable annuity invests money in the market with all the risks associated to market investing. There usually are death benefit guarantees where if you die before taking money out, the initial amount of premium is returned to your heirs.
Please contact a registered representative to get more details and a prospectus.