Fixed deferred annuities
What’s a fixed deferred annuity?
It’s a long-term insurance product that provides protection and growth for your retirement money. It can also create a series of income payments that can continue for life.
What does “fixed deferred” mean?
Fixed refers to the fact that you will earn a fixed interest rate, and deferred means you can defer income payments to a time of your choosing.
Dependable, guaranteed growth. You earn a fixed interest rate for a specific time period.
Protection from market risk.
Interest is tax-deferred1 (it’s not taxed until you take it out), so it can compound over time.
What’s compound interest?
Compound interest means that you earn interest on the initial amount of money you put into an annuity AND on the interest that money accrues. As the annuity grows, the interest it earns is calculated on the new, higher balance each [interest term].
How do fixed deferred annuities work?
You put money in
You purchase the annuity contract with a lump sum or a series of payments over time.
It grows over time
The interest rate earned on this contract is guaranteed for a certain period of time (the [surrender charge period]) depending on which annuity you choose.
And pays you back later
At the end of the surrender charge period, you can:
- Receive your accumulated contract value in a lump sum.
- Keep your money in the annuity and continue earning interest.
- Convert your contract value into a series of regular income payments for retirement.
What’s contract value?
What an annuity contract is worth, including the amount of money that was added and any interest that has been earned.
I don't want any surprises. What else should I know?
Fixed deferred annuities are contracts that last for a specified period of time. But let’s face it, things happen. At Symetra, you may withdraw up to 10% of your annuity’s value each contract year during the surrender charge period free of charge. Withdrawals of more than 10% during the surrender charge period may result in a surrender charge penalty.