People will tell you myths about fixed index annuities with income riders, either because they don’t really understand how they work, or they want to sell you something else.
Myth #1-You will pay very high fees. NOT TRUE. Total average annual cost for a fixed index annuity with an income rider is 1.0 percent, in writing, fully disclosed.
Myth #2-There’s a big commission that comes from your money to pay the agent. NOT TRUE. No commissions are deducted from your money- the annuity company pays the agent, you don’t.
Myth #3 - You can’t access your money for a long time. NOT TRUE. In some plans you can access income immediately, and in most plans, you can access funds after 12 months.
Myth #4 – When you die the insurance company keeps your money. NOT TRUE. After using the income rider for lifetime income, 100 percent of the funds remaining at death pass to beneficiaries.
Myth #5 – The insurance company can change your contract at any time .NOT TRUE. Your annuity is a legally binding enforceable contract that can’t be changed without your consent.
You can protect your savings from losses & receive lifetime income, but could incur surrender charges, gains aren’t guaranteed, you’ll pay a fee, and guarantees are backed by the financial strength claims paying ability of the issuing annuity company.
If you want to learn how a fixed index annuity with an income rider could fit you’re your plans for retirement, call us.
VIP Financial
402.547.0395
Wealth Management in Parker CO
Financial Planning