Liberty Mutual Insurance is a top insurance company in USA.The Company offers Fixed Deferred Annuities policy, which allow individuals to save a fixed amount of money for a given period of time before they receive lump sum amount.
A fixed deferred annuity is designed to help you accumulate funds for your retirement in a safe and secure way.
You purchase a fixed deferred annuity with either a single payment or a series of payments. Your money earns interest at a fixed rate that will never drop below a minimum rate guaranteed by the issuing company. That makes a fixed deferred annuity a safe choice for accumulating funds for retirement.
Meanwhile, your money grows tax deferred, which means you don’t pay taxes on your earnings until you withdraw money from your annuity. The taxes you would normally pay on interest earnings stay in your annuity and compound to help the value of your account grow faster.
Many annuities provide access to your money through penalty-free withdrawals. And, when you choose, you can turn the value of your annuity into a stream of income that will last as long as you live.
If you’re looking for a way to protect your retirement savings and want to avoid investments tied to the stock market, a fixed deferred annuity may be the right choice for you.
Annuity Benefits
Annuities made easy with this list of key benefits of fixed deferred annuities.
senior couple discussing annuity benefits.
- Safety
Unlike other types of annuities, the money in a fixed deferred annuity grows at a guaranteed minimum interest rate.That means your account value will never go down unless you choose to make withdrawals.
- The opportunity to generate a stream of income for life
Fixed deferred annuities give you the choice to receive guaranteed payments for the rest of your life. This predictable income stream can help you plan for the goals you want to achieve during retirement.
- Tax-deferred growth
The money in your annuity accumulates on a tax-deferred basis. That means you do not pay taxes on your earnings until you withdraw the money. Because of tax deferral, your money may grow faster in an annuity than it might in a similar, taxable investment.
- A guaranteed death benefit
In the event of your death, your annuity’s account value will be paid directly to your beneficiary.
- Access to your money
With most fixed annuities, you can access a portion of your money each year after the first year without any withdrawal charges. And after a certain length of time most fixed annuities will allow you to access your money whenever you choose or to receive automatic withdrawals without paying withdrawal charges. Finally, when you’re ready, you can turn the value of your annuity into a guaranteed stream of income that will last as long as you live.1
- Security
Buying an annuity from a reliable company with a strong financial history gives you the confidence to know your money will be there when you need it.
- Simplicity and transparency
With guaranteed rates and easy-to-understand payment options, fixed deferred annuities are one of the most straightforward retirement savings options available.
- Timed payments to minimize taxes
To minimize taxes, you can time your withdrawals to begin in later years, when your taxable income may be less.
Annuities are important, especially if you wish to live a comfortable life after retirement. The package you receive will cater for your upkeep, treatment and other basic necessities. Unlike the money you occasionally receive from relatives, this amount from Liberty Mutual is assured, it’s yours.
