Annuities
Bottom line up front: An annuity converts a lump sum into guaranteed income — either immediately or at a future date. It's the only financial product that can guarantee you won't outlive your money.
Daniel Nicholas What is an annuity?
An annuity is a contract between you and an insurance company. You pay them a lump sum (or a series of payments), and in return they guarantee you income — either starting immediately or at a future date you choose. It's essentially a personal pension.
Annuities solve a specific problem: the risk of outliving your savings. Social Security covers a portion of retirement income. A 401(k) or IRA covers more. But neither guarantees you won't run out. An annuity does. The insurance company takes on the longevity risk in exchange for your premium.
As an independent agency, we compare annuity rates and features from multiple carriers to find the right fit for your retirement goals. Our guidance costs you nothing — the carrier pays us from their built-in distribution costs.
Types of annuities
Not all annuities work the same way. Here are the types most relevant for retirement planning:
Multi-Year Guaranteed Annuity (MYGA)
The CD alternative
A MYGA pays a fixed interest rate for a set period — 3, 5, 7, or 10 years. Like a bank CD, but with tax-deferred growth and often higher rates. Your principal is guaranteed. At the end of the term, you can renew, withdraw, or roll into another product.
Best for: Conservative savers who want predictable, guaranteed growth without market exposure. A safe place to park money you won't need for a few years.
Fixed Indexed Annuity (FIA)
Growth potential with a floor
A fixed indexed annuity earns interest based on the performance of a market index (like the S&P 500), but with a guaranteed floor — typically 0%. You participate in some upside when the market rises, and lose nothing when it falls. Growth is credited annually and locked in.
Best for: People who want more growth potential than a MYGA but can't afford to lose principal. Pre-retirees with 5–15 years until they need the income.
Single Premium Immediate Annuity (SPIA)
Income that starts now
You give the carrier a lump sum; they start paying you monthly income within 30 days. The payment is guaranteed for life, a set period, or both. SPIAs are the simplest annuity — no accumulation phase, no moving parts. You're buying a paycheck.
Best for: Retirees who want to convert a portion of their savings into guaranteed monthly income they can't outlive. Complements Social Security.
Deferred Income Annuity (DIA)
Future income, locked in today
Like a SPIA, but income starts at a future date you choose — often 5, 10, or 20 years from purchase. The longer you defer, the higher the monthly payment. Sometimes called a "longevity annuity" because it's designed to protect against running out of money in late retirement.
Best for: People in their 50s–60s who want to guarantee income starting at age 75 or 80. Protects against the "what if I live to 95?" scenario.
Variable Annuities
For reference — we do not sell securities
Variable annuities invest in market sub-accounts (similar to mutual funds) with no principal guarantee. They offer unlimited upside but full downside risk, plus typically higher fees. Variable annuities are securities products that require a Series 6 or Series 7 license to sell. Our agency focuses on fixed and indexed products that protect your principal.
Who are annuities for?
- Retirees who want guaranteed monthly income they can't outlive
- Conservative savers looking for better rates than bank CDs with tax-deferred growth
- Pre-retirees (50–65) who want market-linked growth without risking their principal
- Anyone worried about outliving their savings — especially those without a pension
- People with $25,000+ available to commit for 3+ years
Not ideal for:
- • People who need full liquidity within the next 3 years
- • Young investors with a long time horizon (market investments typically outperform over 20+ years)
- • Anyone who hasn't maxed out employer 401(k) matching first
How it works with us
- 1
Tell us your goals. Are you looking for guaranteed income, tax-deferred growth, or principal protection? How soon do you need the money? What's your risk tolerance?
- 2
We compare carriers. We shop rates and features from multiple A-rated carriers. MYGAs rates change weekly — timing matters, and we track them.
- 3
You choose. We present options with clear explanations of rates, surrender periods, fees, and income projections. No pressure. Take your time.
- 4
We handle the paperwork. Application, fund transfer, and carrier coordination. We stay in touch after the policy is issued — your agent for the life of the contract.
Compare annuity rates
Tell us what you're looking for and a licensed agent will compare options from multiple carriers. No cost, no obligation.
Or call 1-888-550-QUOTE (7868) during business hours.