(NAPSA)—In the face of uncertain markets, many are turning to A) financial products that they con- sider more dependable. This is particularly true for those plan- ning for retirement. That’s a key reason many people are taking a closer look at annuities. An annuity is a contract between you and an insurance company that allows you to deposit a certain amount of money. In return, the insurer makes payments to you over a period of time spelled out in the contract. An annuity may also be structured to ip) j € fth An annuity is a contract between you and an insurance company that allows you to deposit a cer- provide income to another person, such as a surviving spouse. An annuity is not a life insurance policy—although some annu- tain amount of money and get paymentsin return. fact, there are often tax penalties following: ities include death benefits. In ing an annuity, remember the for early withdrawals. What annuities can do is provide retirement-dependable in- best for everyone. Different prod- that last a lifetime or for a time product will vary, so do your lifetime of your spouse or another person. Be sure your agent answers all your questions and read the fine print. Like some other formsofretire- of life insurance, annuity and come. When you purchase an annuity, you can choose payments that you specify. Lifetime payments can be made throughout yourlife or extended to last the There are annuity products that allow you to choose how you will pay for it—in a single premium or periodic premiums. ment income, annuity earnings may have tax benefits. You can build up savings in annuities without paying federal income No single annuity product is ucts make sense for different people. Terms and conditions of each homework. Read the contract carefully. * Get everything in writing before you sign. IMSA promotes high ethical standards in the sale and service long-term care products. These standards help ensure that a company commits itself to honesty, fairness and integrity in all customer contacts involving taxes on gains on the funds until you begin to withdraw money. Each company sets maximum the sale and servicing of individual life insurance, long-term care to your annuity, and some annuities allow you to contribute addi- For a free consumer’s guide to annuities, in either English or amounts for initial contributions tional money at any time. According to the Insurance Marketplace Standards Association (IMSA), if you are consider- insurance and annuities. Spanish, visit www.IMSAethics.org. The guide includes “Ten Safe Steps to Buying Annuities with Confidence.”
