What are annuities? Are they a good investment?​


Annuities are more simple than you may think. An annuity is a form of investment entitling the investor to annual withdrawals. Typically, this is a fixed sum of money paid to someone each year, usually for the rest of their life.

An annuity the safest investment you can make, typically giving returns of 3% – 8% per year. You form an annuity by transfering money to a life insurance company that specializes in annuities, and they invest your money into mutual funds. They guarantee minimal returns and have built in safeguards, so even if the market crashes, you are well protected. Also, at the end of the annuity term, they begin to send you your payments.

An annuity is a form of insurance or investment entitling the investor to a series of annual sums. Typically, a fixed sum of money paid to someone each year, usually for the rest of their life. 

Annuities certainly are not for everyone. In order for your money to make money, it needs to stay invested with the insurance company. Usually for 5-10 years. Of course, you can opt for more time depending on your age and financial needs. Annuities are built from the ground up, to be versatile for your needs, depending on your financial situation.

You don’t need a ton of money to invest like the wealthy.

A common misconception is that you need hundreds of thousands or millions of dollars to create an annuity in the first place. While that would be a great problem to have, you can get started investing in an annuity with as little as $10,000.

What is the process for applying for an annuity?

The process is fairly simple. First, you will need to meet with a state-licensed Annuity specialist. Lucky for you our agents have all completed additional training just on annuities, and are certified and experienced and ready to assist you.


In the first meeting with your exclusive agent, you and your agent will review your financials. This is absolutely necessary, as many people do NOT qualify for annuities. Qualification is mainly dependant on 2 things:

  1. You must have at least $10,000 you will invest/transfer to the annuity
  2. Based on your financial situation, it must be clear that the investment into the annuity will not harm you, financially. Meaning- if you put money in the annuity, most or all of it can stay in the annuity for the annuity term, without you needing to withdraw all the funds within the first 5 years.

Sometimes there are fees if you withdrawal your annuity early but usually no fee if your financial situation is medical related.

Schedule an appointment with one of our state-licensed annuity specialists. We can answer your questions and help prepare you so the process is quick and simple.