Ace Benefits Group - Fixed Annuities

Fixed Annuities

ABG offers a variety of fixed annuities, both deferred and immediate:

Deferred Annuities:

Deferred Annuities typically have two phases: the accumulation phase and the payout phase.

Accumulation Phase:

You pay premiums into your policy, and the insurance company credits interest to the fixed annuity, building

policy

value. Tax deferral accelerates earnings with your premium earning interest and your interest earning interest.

With an annuity,

you won’t

pay taxes on your money as it grows, unless it’s withdrawn or otherwise distributed.

Our insurance carriers offer various options so policy owners can choose to purchase an annuity and begin the accumulation phase

with a

single lump-sum premium or with flexible premium payments.

Annuitization Phase:

Also known as the income or pay-out phase, the annuitant receives income from the policy. Our annuities offer

variety of annuitization options that can allow for a guaranteed stream of payments for a fixed time period, for the rest of your life, or

for your

life and the life of your spouse, or another loved one.

Immediate Annuities:

A fixed immediate annuity allows you to turn a single lump-sum premium into an immediate guaranteed

stream of

income, regardless of what happens in the financial markets. Whether you need income for a specified period of time or for

the rest of your

life, no matter how long you live, or for the rest of your life and that of your spouse, or another loved one, an immediate

annuity provides a

guaranteed payment stream.

Getting Started

Tax deferral is only available to individuals. It is not available for annuities owned by entities such as corporations and most types of trusts. There is no additional tax deferral benefit derived from

placing

IRA or other tax-qualified funds into an annuity. Features other than tax deferral should be considered in the purchase of an annuity.

Under current federal tax laws, amounts withdrawn or distributed may be subject, in whole or in part, to federal income tax. In addition, a federal income tax penalty may apply if distributions

are made

prior to age 59 ½.

Fixed Annuities