Annuities
An annuity is an insurance contract designed to help individuals grow retirement savings and create a source of future income. During the accumulation period, earnings grow on a tax-deferred basis, meaning taxes are not owed on interest earned until funds are withdrawn. When retirement arrives, annuities offer a variety of payout options, including income that can be guaranteed for life.
Annuities are contracts between you and an insurance company. You make deposits into the annuity contract, and the insurance company credits interest according to the terms and guarantees outlined in the contract. Some types of annuities may offer no guarantees, risk of principal loss, and administrative fees.
However, SNPJ specifically offers FIXED ANNUITIES. A fixed annuity provides principal protection, zero administrative fees, and the opportunity for predictable, steady, fixed interest crediting. Because all annuities are intended for long-term retirement savings, withdrawals taken before age 59½ may be subject to a 10% IRS tax penalty, in addition to ordinary income taxes, unless an exception applies.
Fixed annuities and bank certificates of deposit (CDs) are both designed to help protect contributions while earning predictable interest. However, annuities offer several additional features specifically designed for retirement planning.
| Feature | Fixed Annuity | Bank CD | Advantage? |
|---|---|---|---|
| Tax-Deferred Growth | Earnings grow tax-deferred until withdrawn | Interest is taxable annually in non-qualified accounts | « Annuity » |
| Lifetime Income Options | Can provide guaranteed income you can never outlive | No lifetime income options | « Annuity » |
| Settlement Options | Multiple payout and income options | Limited payout options at maturity | « Annuity » |
| Beneficiary Designations | Proceeds avoid probate by passing directly to beneficiary | Varies by institution and account registration | « Annuity » |
| Retirement Planning Features | Designed for long-term retirement accumulation and income | Primarily a short-term savings vehicle | « Annuity » |
| Principal Protection | Protected from market fluctuations | Protected from market fluctuations | Tie |
| Interest Rates | Minimum guaranteed rates for life | Depends on CD terms and renewal rates | « Annuity » |
| Contribution Flexibility | Additional deposits can be made | New CDs often require separate purchases | « Annuity » |
The SNPJ Promise Series annuity is approved in the following states: California, Colorado, Florida, Illinois, Indiana, Kansas, Michigan, Missouri, New Mexico, Ohio, Pennsylvania, West Virginia and Wisconsin.
| Type of Annuity | Surrender Period | Interest Rate |
|---|---|---|
| Promise 5 | 5 years | See Current Rates |
| Promise 8 | 8 years | See Current Rates |
Click on the annuity name for a brief description of each annuity SNPJ offers.
An SNPJ fixed annuity offers a variety of features designed to help individuals accumulate retirement savings with confidence. Competitive interest rates are credited daily, and a guaranteed minimum interest rate provides added peace of mind. For those planning for retirement income, SNPJ annuities offer multiple payout options, including the ability to receive income for life.
SNPJ annuities also provide valuable flexibility. Contract holders may withdraw up to 10% of the contract value each year without surrender charges, and surrender charges may be waived in certain situations, including death, qualifying disability, or nursing home confinement, subject to contract provisions. Named beneficiaries receive proceeds directly, helping avoid the delays and expenses often associated with probate.
In addition, SNPJ annuities offer tax-deferred growth, flexible contribution options that allow you to contribute according to your financial situation, and access to contract values when needed, subject to contract terms. Backed by personalized service from the SNPJ Home Office, our annuities are designed to help provide financial security throughout your whole retirement.
