What is an Annuity?

An Overview of Annuities

To ensure financial success in the future, it’s important to start planning now. That’s where annuities come in! An annuity can earn tax-deferred interest and secure a stream of income that will help you maintain a comfortable lifestyle during your retirement. It's a guaranteed contract between you and an insurance company, like ELCO Mutual, that acts as a long-term retirement vehicle to protect you from outliving your money.

Depending on the type of annuity you choose, you can make a one-time payment in the form of a lump sum or a series of contributions over time. Then, at the time of your choosing—either right away or later down the road—you’ll receive disbursements of this tax-deferred money. Payments are made to you for life, ensuring you you’ll always have incoming funds.
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Deferred Annuities

When you purchase a deferred annuity, you can make a lump sum or series of premium payments and receive payouts in the future, after a period of accumulation. This money is not taxed until it’s distributed, and depending on the contract, you can make as many contributions as you’d like.

WHO BENEFITS FROM A DEFERRED ANNUITY?

Consider purchasing a deferred annuity if you’re interested in

  • Continuously accumulating money to leave for family members
  • Having money available to cover the cost of unexpected emergencies
  • Supplementing retirement income
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Download Our Free Guide for Everything You Need to Know About Deferred Annuities

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