5 Reasons Why Americans Buy Fixed Annuities

BY Sagicor Life Posted May 01, 2020 In Sagicor Life USA Tips

1. Tax-deferred growth potential
With a fixed annuity product, your savings grow tax-deferred, so that you can accumulate more over time for your future than if you had to pay tax now on any interest earned. Some annuities enable you to lock in a guaranteed rate of interest for a specific period of time.


2. Protection from market losses
While many Americans worry about market volatility, if you have a diversified portfolio and don’t expect to retire and withdraw from your retirement savings for 10 or more years, your portfolio will probably have time to recover from current market losses.

But, if you’re approaching retirement or retired, you may want to continue to accumulate more, while sheltering your savings from market losses.


3. Retirement income

As people are living longer, and pension plans continue to be a thing of the past, individuals need alternative solutions to supplement their Social Security retirement benefits so they can pay their bills and enjoy their lifestyle. If you’re ready to take that step to secure a steady stream of income, consider the income options available with a single premium immediate annuity.


4. Legacy creation
Some annuities offer death benefit options that can be paid to your beneficiary in a lump sum or in a series of payment options. 


5. Portfolio diversification
A smart way to help protect your retirement portfolio is to be diversified. This gives you opportunities in retirement to take income from assets not affected by market fluctuations, protecting your overall retirement investments. And that’s one of the many benefits of diversifying your retirement portfolio with fixed annuity products.


What you can do
Talk with an insurance professional, who can guide you to solutions that can help you meet long-term goals for retirement income security.

Find more information about how Sagicor’s annuities can help you, or contact us at www.sagicor.com/en-us/contact-us.


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Sagicor Life Insurance Company, home office Scottsdale, Arizona issues life insurance and annuities. Products not available in all states and state variations may apply. Products have limitations and restrictions including surrender charges. 


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