Insurance

Annuities

Annuities are investments issued by insurance companies that can be used to help build a guaranteed income stream or a retirement nest egg. It’s like being able to create your own pension fund or IRA. Annuities come in many varieties, helping investors reach diverse retirement goals.

If you’re looking for a steady source of retirement income with minimal risk, an annuity may sound like a tempting option. Annuities are financial products sold by insurance companies. When you buy an annuity, you’re agreeing to deposit a large sum of money with the insurer. They’ll invest it on your behalf, and then return it to you through a series of regular payments.

Your annuity payments may not begin right away. The first stage of an annuity is called accumulation. That’s when you’ll deposit money into the annuity account. At a point specified in your contract, the account is annuitized—the money becomes the insurer’s and they’ll begin making payments. It sounds straightforward, but the reality is annuity contracts can be complex, making it difficult to grasp the ins and outs of what will happen with your money.

There are many types of annuities. The simplest is a fixed annuity, which provides a fixed rate of return—but typically at a lower rate than investors could achieve with different investments. Compare that to variable annuities, which deposit your money into sub-accounts, which are invested in the stock market. These investments can return more market-like returns, but come with risks similar to the market. Many other types of annuities exist, each with its own pros and cons.

Contact MA Brokerage Solutions to learn more and to see if an annuity makes sense for your economic freedom

Life Insurance

Life insurance is a contract that provides a financial benefit to your beneficiaries if you pass away. It’s designed to help protect your loved ones from financial hardship. Choosing the right type of life insurance depends on your goals, budget and time horizon.

Term life insurance offers affordable coverage for a set period, making it ideal for temporary needs like income replacement or mortgage protection.
Whole life insurance provides lifelong coverage with fixed premiums and a guaranteed cash value component, often used for estate planning or leaving a legacy.

Universal life insurance combines lifelong protection with flexible premiums and the potential to build cash value based on interest rates, offering more adaptability as your financial situation evolves.

Understanding these differences can help you select the policy that best first your long-term needs.

Insurance Type	Coverage Duration	Flexibility	Cash Value
Term Life	Fixed term (e.g., 10, 20, 30 years)	Generally lower than other options and fixed	No cash value
Whole Life	Lifetime coverage	More expensive option than term and fixed	Builds guaranteed cash value
Universal Life	Flexible, can last lifetime	Flexible, can vary over time	Builds cash value based on interest rates

Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options.

Annuities are not guaranteed by any bank or credit union and are not insured by the FDIC or any other federal government agency. Guarantees apply to certain insurance and annuity products and are subject to product terms, exclusions and limitations and the insurer’s claims paying ability and financial strength.

Life insurance products are offered through affiliated or unaffiliated insurance companies. Guarantees are based on the claims-paying ability of the issuing insurer. Life insurance is not a deposit, not FDIC-insured, not insured by any federal government agency, and may lose value.

Investing in a variable annuity involves risk of loss – investment returns and contract value are not guaranteed and will fluctuate.

Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge also may apply. Withdrawals will reduce the contract value and also may reduce the value of any rider benefits.

Some products and features may not be available in all states and variations may apply. Certain features may not be available in all products or depending on type of funds used to purchase the annuity.