Annuities 

ANNUITIES INDIVIDUAL: Provided by Insurance Companies Through Contracts and Tax Deferment Determined By Permitted Laws

EDUCATION-First Insurance Solutions for Long-Term Income Planning

PURPOSE & SCOPE

Annuities are insurance contracts designed to help individuals address long-term income planning, principal protection objectives, and tax-deferred accumulation goals. When structured appropriately, annuities may provide contractual features that support predictability and financial stability.

This material is provided for educational purposes only and does not promote any specific insurance company, product, or contract.

WHAT IS AN ANNUITY?

An annuity is an insurance product issued by a licensed insurance company. Depending on contract structure, annuities may be used to:

• Accumulate funds on a tax-deferred basis (where applicable)
• Create predictable income streams
• Reduce income uncertainty over time

Annuities are not bank products and are not securities unless explicitly stated.

TYPES OF ANNUITIES

FIXED ANNUITIES
Provide predictable interest crediting and are often used for conservative accumulation or income planning.

FIXED INDEXED ANNUITIES
Offer interest crediting linked to an external index while providing protection from direct market losses. Growth is subject to contractual limits.

INCOME FOCUSED ANNUITIES
Designed to provide contractual income, which may be structured for lifetime or defined periods.

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IMPORTANT ANNUITIES DISCLOSURE

Annuities are insurance products, not bank deposits, and are not insured by the FDIC or any federal government agency. Guarantees, if any, are based on the claims-paying ability of the issuing insurance company. Product features, income options, riders, and availability vary by state and contract.

This information is provided for educational purposes only and does not constitute investment, legal, or tax advice.

ANNUITIES BUSINESS: Are not Employee Benefits: Consult with Lawyers and Tax Professionals

EDUCATIONAL OVERVIEW for Business Income & Planning Strategies

PURPOSE

Businesses may use annuities as part of long-term planning strategies to support:

• Income planning for business owners
• Deferred compensation considerations
• Executive retention strategies
• Financial continuity objectives

Business annuities are insurance contracts and are not employee benefit plans unless specifically structured as such.

COMMON BUSINESS APPLICATION

• Non-qualified deferred compensation planning
• Executive benefit strategies (where applicable)
• Income planning for closely held business owners
• Balance-sheet positioning

KEY BUSINESS CONSIDERATONS

• Ownership and beneficiary structure
• Liquidity and access provisions
• Contract duration and surrender terms
• Tax treatment and reporting obligations

IMPORTANT DISCLOSURE

Business annuities are subject to contract terms, suitability review, and state availability. Guarantees are based solely on the claims-paying ability of the issuing insurance company.

QUALIFIED VS. NON-QUALIFIED

EDUCATION -Only Overview

QUALIFIED ANNUITY

• Funded with pre-tax retirement dollars
• Typically associated with employer plans or IRAs
• Distributions generally taxable as ordinary income
• Required distributions may apply

NON-QUALIFIED ANNUITY

• Funded with after-tax dollars
• Tax-deferred growth
• Only earnings are generally taxable upon distribution
• No required distributions during the owner’s lifetime (generally)

Tax treatment depends on individual circumstances and applicable law.