Plans & Coverage
Annuities
An annuity is a contract with an insurance company that can provide guaranteed income for life, protect principal, or grow savings tax-deferred. For retirees worried about outliving their money, the right annuity can be a stable foundation alongside Social Security.
Types
Fixed annuities offer a guaranteed rate; fixed-indexed annuities link growth to a market index with downside protection; income annuities turn a lump sum into a paycheck for life. We explain the trade-offs plainly.
Questions, answered
Are annuities safe?
Fixed and fixed-indexed annuities protect your principal — your account value cannot go below zero due to market losses. They are backed by the issuing insurance company's financial strength and state guaranty associations. We only recommend products that fit your goals and risk comfort.
What is the difference between a fixed annuity and a fixed-indexed annuity?
A fixed annuity earns a guaranteed interest rate declared by the insurer. A fixed-indexed annuity links your growth to a market index (like the S&P 500) with a floor that protects against losses — you capture some upside without risking your principal.
Can an annuity provide guaranteed lifetime income?
Yes. Income annuities (immediate or deferred) can be structured to pay a guaranteed monthly income for the rest of your life, regardless of how long you live or how markets perform. This is one of the primary reasons retirees use annuities.
Are there fees in annuities?
It depends on the product type. Fixed and fixed-indexed annuities generally have no explicit fees — the insurer earns a spread. Variable annuities typically do have fees. We explain all costs clearly before any recommendation.
How do annuities fit with Social Security and Medicare?
Annuity income can supplement Social Security to cover essential expenses in retirement. It is important to note that annuity income counts as ordinary income for tax purposes and can affect IRMAA premiums for Medicare Part B and Part D. We factor this into retirement income planning.
Talk to a local Clinton, NC agent
Free, no pressure — we compare your options for you.