Annuities
Americans are now living longer and thus spending more time in the retirement phase of life. Are you prepared for this period of your life, and do you have the income to assure that you won’t have to depend on anyone else? Are you on the right path to retirement?
As a part of your retirement plan, you may want to consider an annuity from Alfa Insurance®. Annuities are tax-deferred long-term savings vehicles offered through insurance companies like Alfa. More people are including annuities in their financial planning to improve their overall financial security.
Alfa offers two types of annuities: single premium deferred and flexible premium deferred. Both earn and accumulate interest on a tax-deferred basis, so the interest earned is not taxed until the money is withdrawn. The interest rate may change each year on the policy anniversary date but does not change during the year. On the day you decide for payments to begin from this policy, payments may either be in a lump sum or a selected payment schedule. Both types of annuities have a death benefit equal to the accumulation value.
Single premium deferred annuity
With Alfa’s single premium deferred annuity you make only one premium payment at policy issue. You can then withdraw up to 10 percent of the accumulation value each year without a withdrawal charge. The interest rate may change each year on the policy anniversary date but does not change during the year. You can determine the maturity date for when the accumulation value would begin to be paid to the annuitant using the selected settlement or lump sum payment options.
Single premium deferred annuity Contribution Limits
- Minimum: $5,000
- Maximum: $500,000 or more with prior company approval
Flexible premium deferred annuity
With Alfa’s flexible premium deferred annuity, you can make premium payments on a regular or irregular basis. The interest rate may change each year on the policy anniversary date but does not change during the year. You can determine the maturity date for when the accumulation value would begin to be paid to the annuitant using the selected settlement or lump sum payment options.
Flexible premium deferred annuity Contribution Limits
- Minimum: $600 Annually
- Maximum: $500,000, or $10,000 monthly, for lifetime of contract or more with prior company approval
For more information about Alfa’s annuities, please contact your local Alfa agent.
* Payments withdrawn during the first 10 years of the annuity contract will be subject to an early withdrawal charge. Please refer to the annuity contract and illustration for additional information. Tax penalties may apply to withdrawals made before the contract purchaser reaches age 59 1/2. Your tax advisor can assist you with the tax implications of annuity withdrawals.
