LGCB INSURANCE SERVICES
An LGCB Insurance Services, Inc. Program

Fixed Annuities

A fixed annuity is a contract issued by the insurance company designed to help you accumulate funds for your retirement income. There’s no limit on your annuity contributions and you may invest in a fixed deferred annuity with either a single payment or flexible payments (a series of payments).

Some of the advantages of Fixed Annuities include:

• Safety :  Principal are guaranteed¹ by the issuing insurance company.
  
• Fixed Interest Rate:  Your money earns interest at a fixed rate that will never drop below a minimum rate guaranteed¹ by the issuing company.
  
• Tax deferred:  Interest earned each year grows tax deferred, which means you don't pay taxes on your earnings until you withdraw money from your annuity. The taxes you would normally pay on interest earnings stay in your annuity and compound to help the value of your account grow faster.
  
• Access to money:  Most annuities allow withdrawals at least once annually (usually up to 10% of the account value) without a withdrawal or surrender charge. Monthly withdrawals of interest and free withdrawals for special needs such as confinement to a nursing home are also widely available. Withdrawals may be taxable and a 10% penalty may apply to withdrawals taken prior to age 59½.
  
• Option to Annuitize for Life time income:  Distributions can be spread out over a set period or may continue for the life of the annuitant and beneficiary².
  
• Low Maintenance:  No up-front Sales charge or maintenance fee³.
  
• Avoid Probate:  If annuitant passed away while owning a fixed annuity, your money goes straight to the beneficiaries on your contract. Because the money doesn’t become part of your estate, it doesn’t go through probate (the legal process), where creditors and relatives can lay claim to it.
  

For more information on the features and benefits of Fixed Annuities, please  call or visit your local branch to speak to one of our  licensed financial professionals.

1. Guarantees are based on the claims paying ability of the issuing company.

2. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation.

3. There are surrender charges which may be imposed generally during the first 5 to 7 years or during the rate guarantee period.