An annuity is a savings product that lets you put aside money for retirement in the future. Annuities provide tax-deferred growth during the accumulation years, and let you choose from many payout options when you retire and need to use the money. Since earnings are tax-deferred, annuities are an excellent way to build long-term savings.
Annuities are contracts between you and an insurance company. You agree to deposit money with them, and in turn, they invest your money and agree to pay you a predetermined rate of interest. The insurance company also agrees, within the terms of the contract, to return all of your invested capital, plus interest, at a specified future date. Since annuities are designed as long-term savings vehicles, the Federal government imposes a 10% penalty on any money withdrawn from an annuity account prior to age 59½.
Owning an annuity is very similar to owning a CD (certificate of deposit) at the bank, and annuities represent an extremely secure investment. Annuities are far superior to CDs, as the table below illustrates in further detail:
|More choices on how your money is returned (settlement options)||Fewer settlement options||« Annuities »|
|Annuity yields will be approximately 1 to 2% greater than CD yield||CD yields will be approximately|
1 to 2% less than annuity yields
|« Annuities »|
|Annuities can accommodate lifetime payout requests which you can never outlive||CD payouts are based|
over a fixed period of time
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|Annuity funds may be paid directly to your beneficiaries, helping to bypass probate||CD payouts must be paid to the CD owner, tying up much-needed final expense funds||« Annuities »|
The SNPJ Loyalty Series annuity is approved in the following states: California, Colorado, Illinois, Indiana, Kansas, Michigan, Missouri, New Mexico, Ohio, Pennsylvania, West Virginia, and Wisconsin.
|Type of Annuity||Surrender Period||Interest Rate|
|Loyalty 5||5 years||See Current Rates|
|Loyalty 8||8 years||See Current Rates|
Click on the annuity name for a brief description of each annuity SNPJ offers.
An SNPJ annuity has many advantages. High current interest is compounded daily and a minimum interest rate is guaranteed. Lifetime income options are available. Withdrawal penalties are waived for the following: 10% of the cash value in any penalty year, and withdrawals due to death, disability and nursing home expense. Payments made to a named beneficiary should avoid probate, flexible payments are available (put more or less in, depending on your finances), cash value is readily available, there is deferred taxation, and courteous SNPJ service is always just a toll-free phone call away.