Debunked – Misconceptions About Annuities

🚫❌ Misconception 1: Annuities are too complex! ❌🚫

Truth: While annuities may seem intimidating, they are actually quite straightforward. In exchange for a payment of premium, an insurance company will provide a series of income payments.

Annuities are like loyal financial companions, providing you with a secure and predictable income stream during retirement. An annuity can also help provide financial protection against the risk of living too long and running out of money.

🚫❌ Misconception 2: Annuities are not safe ❌🚫

Truth: Annuities are considered insurance products. This means they are backed by the financial strength of the issuing insurance carrier. Annuities are also insurance contracts. Meaning, if you follow and abide by the rules of the contract there will not be any surprise penalties or loss of principal and credited interest due to surrender charges.

Most importantly, with fixed annuities, there is no loss of principal due to market downturns and can be a solution that provides guaranteed credited interest and lifetime income.

🚫❌ Misconception 3: Annuities tie up your money forever! ❌🚫

Truth: Annuities offer flexibility. While some annuities have long-term commitments, others provide shorter surrender periods. Additionally, many annuities have withdrawal options that allow you to access your funds when needed. You have control over your money, ensuring it’s available for emergencies or other financial goals.

🚫❌ Misconception 4: Annuities are expensive and hold hidden fees! ❌🚫

Truth: Fees are always outlined in the annuity contract. Any additional riders to a policy often cost more and will be presented in the contract as well. One must be aware of the surrender charges to a specific contact regarding time when initiating a withdrawal and the amount withdrawn.

While annuities come with costs, it’s important to consider the overall value they provide. Annuities offer tax advantages, protection against market volatility, and the potential for lifelong income.

πŸ”πŸ’‘ So, let’s debunk these misconceptions and embrace the truth about annuities during Annuity Awareness Month! Contact us to learn more about the benefits and discover how annuities can enhance your financial future. Don’t miss out on the potential they hold for a secure retirement and peace of mind! πŸŒŸπŸ’­

Corey Shevlin

Corey Shevlin

Corey serves as an investment adviser representative and handles the investment related administration for The Lynch Financial Group. He currently holds his Series 65, Life and Health Insurance licenses. He attended the University of Delaware and graduated with a Bachelor’s degree in Political Science and Criminal Justice in 2019.