Google Rating
Your Maryland Annuity expert
Future financial planning can be intimidating. How will you guarantee your income stream will support your preferred standard of living once you retire? Annuities can make planning for a comfortable retirement more predictable with customized options that meet your future financial needs and goals.
For over 75 years, Abrams/Mendelsohn Insurance has made it simple for Marylanders, and those in other states, to find the right annuity for responsible planning of their financial futures. We are here to help! Read on to learn more about different types of annuities.
What are Annuities?
An annuity is a financial contract issued (and backed) by an insurance company. Annuities are long-term, tax-deferred investments designed to offer you a guaranteed future income stream, typically during retirement. They can be purchased in one lump sum or paid periodically. Payouts may be immediate or deferred based on your financial situation and goals.
Annuities can be customized to suit your needs, like when your annuity payouts start, if you want your annuity to help pay for long-term care, whether you want payments to transfer to a beneficiary after you pass, and more. Let’s discuss in more detail the different types of annuities available to help you better understand which option might be best for you and your family.
Different Types of Annuities
- Immediate Annuity
An immediate annuity is the most basic type of annuity that is paid out immediately (within one year) after purchase. How long an immediate annuity lasts depends on how much you contribute, and how often you receive your payouts. - Deferred Annuity
With a deferred annuity, your tax-deferred contribution grows over time (accumulation period), only to be paid out beginning on a set future date (the payout period). - Fixed Annuity
A fixed annuity is an annuity option with a guaranteed principal and rate of return. Fixed annuities are ideal for individuals who want a specific level of guaranteed income during retirement. - Variable Annuity
A variable annuity has the potential to rise and fall based on the investment portfolio backing it. Variable annuities can increase or decrease in value, depending on the market. We do not sell or advise on these annuities. The only annuities we advise that our clients consider are those with no risk of loss to principal for the annuitant or if money is taken out before the surrender period is over. - Equity-Indexed Annuity
An equity index annuity is a unique annuity with characteristics of a fixed and variable annuity. Equity-indexed annuities earn interest based on the returns of a stock market index (like the S&P 500), with a guaranteed rate of growth set annually. With an equity-indexed annuity, you are guaranteed a minimum interest rate, with the potential to earn a higher return than what is available with a traditional fixed annuity.
We want to be you Annuity & Life Insurance Experts
With so many annuities and life insurance options, it can be challenging to decide which is right for you. Don’t just go to the internet and check rates, though we do offer some of the highest MYGA (multi-year guaranteed annuities and some of the highest rated companies.) Call Abrams/Mendelsohn Insurance to ensure suitability, expertise and your best interest are considered!
We offer more than 75 years of independent insurance experience helping people like you find the best insurance plans for all of life’s events. Call 410-517-2055 to find out which annuity or life insurance plan is right for you.
Annuities: The American Equity Promise
Securing a financially independent future begins today with sound retirement planning and building a dependable source for lifetime income. As a hard-working individual, you take your finances seriously. You have invested your time and energy in order to create and sustain a quality of life that suits you and your family. Just like you insure your home, health, and car, an annuity provides insurance for your nest egg. At American Equity, we strive to provide stable annuity products backed by our company’s financial strength, disciplined investment practices and award-winning customer service.
How Do Annuities Work?
The annuity is backed by the financial strength and claims-paying ability of the issuing company. Annuities are one of the only stable money products that can guarantee practical retirement solutions, such as protecting hard-earned dollars and generating income that cannot be outlived.
There are a variety of annuities available that you can discuss with a financial professional. The two most common categories are fixed annuities and variable annuities. These annuities have different methods of earning interest on the contract value. Fixed annuities guarantee an interest rate that will never be less than zero, even if the market goes down. Variable annuities earn returns based on the performance of the investment portfolio. A return is not guaranteed and the contract value may go up or down.
Get a Quote
We Insure get a quote
Al is accredited for life, health, and long term care insurance, college financial planning and annuities. His experience has led him to become an expert in retirement planning and annuities.