Take our six-question annuity quiz to learn more about the annuity as a retirement savings and income tool and to see if one may be right for you!
QUESTION 1: YES or NO?
Do your retirement income sources, such as Social Security, pension plans, IRAs and 401(k)s, provide enough money to cover your monthly retirement expenses?
If you answered no, an annuity may be right for you…
That’s because an annuity is an insurance product that’s designed to turn your money into an income stream for retirement. You fund an annuity through a lump sum of money or regular payments (known as your principal). Your principal contributions earn a tax-deferred rate of return through a fixed interest rate or interested linked to a market index. Then, immediately or after a period of time, the annuity enters its payout phase and begins paying you income, with many annuities offering monthly payment options.
QUESTION 2: YES or NO?
Do you have a lower tolerance for market fluctuations?
If you answered yes, an annuity may be right for you…
That’s because while an annuity can earn interest based on an external market index, you’re not actually participating in the market. This means your money is never at risk of declining due to market performance.
QUESTION 3: YES or NO?
Are you concerned about outliving your money?
If you answered yes, an annuity may be right for you…
That’s because some annuities guarantee regular payments for life! With this type of annuity, you can count on monthly payments from your annuity for as long as you live. A guaranteed income stream for life is an effective hedge against outliving your retirement income.
QUESTION 4: YES or NO?
In case of an unexpected event that causes the market to take a downturn, do you have the ability to cut back on spending and expenses?
If you answered no, an annuity may be right for you…
That’s because annuities give you some guarantee of monthly income for a determined period or for life. No matter what the market does, the size of payment you receive each month via bank transfer from your annuity will not change (unless you decide to change the size of your payment).
QUESTION 5: YES or NO?
Are you worried that inflation will prevent you from enjoying retirement?
If you answered yes, an annuity may be right for you…
That’s because an annuity is designed to protect what you’ve earned and grow your savings based on favorable market returns. This growth can help you balance some of the purchasing power you may one day lose due to inflation.
Learn more about how annuities can help protect you from inflation!
QUESTION 6: YES or NO?
Is it important for you to leave a financial legacy to your spouse or loved ones?
If you answered yes, an annuity may be right for you…
That’s because when you purchase an annuity form an insurance company, you choose a beneficiary in the contract’s death benefit provision. The beneficiary is the person, people or entity who will receive the money from your annuity when you pass away. Annuities are usually considered to be beneficiary friendly money because they help heirs avoid the time-consuming and often expensive probate process that can reduce inheritance and delay estate distribution.
Learn more about choosing an annuity beneficiary!
We’re here to help!
Are you ready to learn more about how an annuity can help you enjoy a more secure retirement? Find a Bankers Life agent near you, who will answer all your questions and help you find a solution that’s right for you.
Insurers and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here supports the sales, marketing or service of insurance policies. Based upon individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors.
