Your investment and retirement goals are as unique as you are. And because one size doesn't fit all, ABG proudly offers a variety of
fixed annuity products designed to help you achieve exactly what you want.
What is an Annuity?
An annuity is a long–term financial vehicle designed for retirement. It’s a contract between you and an insurance company: you pay
the insurance company a sum of money called a premium – either in a lump sum or over a period of time – in return for guaranteed
payments later, typically at retirement. Annuities may impose a surrender charge for cashing out your policy or making withdrawals
within a certain number of years, so you should probably only consider an annuity if you don't plan on needing access to the funds in
the foreseeable future.
Fixed Annuities: Fixed rate annuities offer a fixed interest rate guaranteed by the claims-paying ability of an insurance company for
a specified period of time – fixed annuities provide a guaranteed minimum interest rate, no matter what happens in the financial
markets. This makes a fixed annuity less volatile than most stocks or other equity investments. ABG has a variety of fixed annuities to
offer policyholders with a variety of premium, interest crediting, living benefit and distribution options.
Indexed Annuities: Indexed annuities offer an interest rate that is linked to a market index. The market index is one factor, that
together with any cap, determines the "excess" interest, if any, to be credited under the annuity. Indexed annuities do not invest in the
stock market or any stock index fund. Their return varies more than a fixed annuity, but not as much as a variable annuity.
Generally, indexed annuities offer greater protection of principal than variable annuities, due to the ability to "lock in" periodic interest
credits. Indexed annuities with interest crediting formulas tied to the stock market have the potential to earn higher interest rates than
traditional fixed annuities when the stock market is rising. Depending on the performance of the index, indexed annuities may not earn
any interest in a given policy year or years, but policy values will not decrease solely due to poor market performance.
a Hamlett Benefits Group Company