
Long-Term Care Planning & Annuity Types
WHY ADD AN ANNUITY?
Your retirement portfolio may include stocks, bonds and mutual funds that all play a part in helping you achieve a successful retirement. However, you may want to consider adding an annuity, which can complement your portfolio by providing attributes for retirement that those categories do not offer.


Fixed
Designed for people who are looking to save money and the ability to draw protected income from their annuity for retirement.
HOW IT WORKS
A Fixed Annuity provides a fixed interest rate that offers a high level of predictability, along with flexible payment choices including the option for lifetime income.
FEATURES
• Rate of interest is guaranteed for a specific period of time.
• Protection from market downturns.
• A choice of payment options, including protected lifetime income for as long as you live.
• Income can begin immediately or be deferred to a later date.
• You may not have to pay taxes on any interest earned until money is withdrawn.
• Access to your funds at any time, possibly subject to charges.
CONSIDERATIONS
• There may be charges and a tax penalty for early withdrawals.

Indexed
Designed for people who want to take advantage of potential gains in the stock market while still having some level of protection against losses.
HOW IT WORKS
With an Index Annuity, the interest you receive is linked, in part, to the performance of a market index, such as the Standard & Poor’s 500 Index. When the index increases, you’ll receive interest – based on what’s specified in your annuity contract. If the index declines, you won’t receive interest, but the principal of your annuity will not be affected.
FEATURES
• The potential to grow based in part on the performance of a market index.
• Protection from market downturns since the value of the annuity is not affected by negative index returns. You are not directly invested in any security or index.
• You may not have to pay taxes on any interest earned until money is withdrawn.
• A choice of payment options, including protected lifetime income for as long as you live.
• Income can begin immediately or be deferred to a later date.
• Standard or enhanced death benefit features are available.
CONSIDERATIONS
• There may be charges and a tax penalty for early withdrawals.
• In a down market, your annuity may not earn interest.

Variable
Designed for people who want to take advantage of both income protection and growth in their retirement savings and are willing to take more risk with their money in exchange for the potential for a higher rate of return.
HOW IT WORKS
With a Variable Annuity, your rate of return is tied to professionally managed funds, similar to a mutual fund, made up of a combination of stocks, bonds and other investments. The value of your annuity can move up or down depending on the performance of the underlying funds selected. With a variable annuity, you can benefit when the investments go up, but lose money if they go down. You can, however, purchase features that protect your principal if the market goes down.
FEATURES
• Potential to benefit from market increases.
• Professional money management with a choice of investment options.
• You may not have to pay taxes on any interest or earnings until money is withdrawn.
• Optional features that protect your retirement income from market volatility and provide protected lifetime income for as long as you live.
• Income can begin immediately or be deferred to a later date.
• Standard or enhanced death benefit features are available.
CONSIDERATIONS
• You could lose some or all of your principal.
• There may be charges and a tax penalty for early withdrawals.