Protection Benefits

Guaranteed* Income Annuity Benefits

Annuities come with many benefits. One of the key benefits of a guaranteed* income annuity is income for life. Now, how does that work? Well, one way to get this is using a fixed indexed annuity. A fixed indexed annuity is a contract with an insurance company, in which the company agrees to make payments to you at specific intervals. Retirees put money in, allow it to grow, and then typically begin receiving payments at the age of 60. You could wait longer than that to begin receiving payments, and you may be rewarded for this with larger payments.

Using an Income Rider on

your Fixed Indexed Annuity

You can arrange ongoing income payments for yourself with a fixed indexed annuity. The payment is typically a fixed withdrawal amount, although you might also have the option of using an income rider. With an income rider, your payments increase with inflation and other costs. So in other words, your guaranteed* income annuity may be set up to have a pay raise for you. This is a way to help retirees manage increases in living expenses, medical costs, and other issues.

Now, there are some limitations to income riders. Be sure to understand and learn about not only the upsides but the potential downsides that come with them. The team here at Safe Harbor is here to help educate you on how different insurance products will impact your unique financial situation.

Keep Your Money Safe

Fixed indexed annuities give you lots of flexibility. The amount of choice they allow for is yet another reason why they're a common product for retirees to consider. Another reason they're considered so reliable, though, is how safe they are in some ways. If the stock market crashes, you don't carry risk. The insurance company does. Fixed indexed annuities allow you to secure your future retirement because of these benefits. When you pass on, your death benefit can also go to your loved ones without having to go to probate court.


The accumulation phase of a fixed indexed annuity typically lasts at least 5 years. By following the terms of your agreement, you avoid surrender charges. During this period, your interest credit on the annuity contract is safe, too. You may also choose to make this growth phase longer, in order to possibly increase your earnings. Call us for an appointment or attend one of our educational events to learn more.

Withdrawal Amount

Having a guaranteed* income annuity can happen with a fixed indexed annuity. But in the accumulation stage, money should be kept in the account. Withdrawing money early may cause you to face large taxation. After the accumulation phase is done, however, you can take money out of your fixed indexed annuity with no additional fees. Be sure to contact us to learn about the specific rules, and if a fixed indexed annuity may be right for you.

When Can You Access Your Money?

In most cases, you can choose whether you receive your income payments monthly or yearly. There are tax impacts to consider with each choice, and you may simply choose to keep the money in the fixed indexed annuity without taking any income payments. This would allow for additional growth. At our events, we can review these topics and more. But although we can meet with you to discuss retirement planning, be sure to contact a tax advisor for any tax-specific questions.

After Your Lifetime Benefits

You might be able to leave your annuity value to your spouse or other designated person after you pass away. Some annuities provide a death benefit as well. You might be able to take advantage of this, even if you’ve taken income payments during your lifetime. Some retirees, for instance, plan on leaving income for their spouse from an FIA after they pass on. Others choose lump sum payment options. Whatever you choose to do, we’re here to help guide you.

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