True or False: Annuities

How well do you understand annuities? Take our quiz and find out!

1. True or False: Annuities offer tax-deferred growth.

2. True or False: Annuities can provide income that is guaranteed for the rest of your life.

3. True or False: Annuities should not be considered as an option while planning for retirement.

4. True or False: Annuity death benefits are generally not subject to probate.

 

 


Answers:

1. True. Under current law, taxes on the growth of an annuity are deferred until the income or withdrawal phase.

2. True. Many annuities include lifetime payout options, which provide payments that are guaranteed for your lifetime.

3. False. Annuities can provide income during retirement. As such, they are an option to be considered as part of the retirement income planning process.

4. True. In general, annuities with a death benefit – a payment to the spouse or other beneficiary after the annuity holder dies – are generally not subject to probate, depending on the state.

 

Neither Midland National, nor any agents acting on its behalf, should be viewed as providing legal, tax or investment advice. Your client should be advised to rely on their own qualified adviser.

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