1) PRINCIPAL PROTECTION

Premium in a "FIXED" or "FIXED INDEX" annuity is NOT subject to market losses; thus, your contracts value will NEVER be less than the premium you put in and the guaranteed interest earned.


2) EXEMPT FROM LEGAL PROCESS

Pursuant to Florida Statue 222.14...  The cash surrender value of annuity contracts are exempt from legal process... and shall not in ANY case be liable to attachment, garnishment, or legal process in favor of ANY creditor.


3) TAX DEFERRED EARNINGS

All premium bonus and interest earnings in an annuity will grow tax deferred for the life of the contract.  You will NOT receive a 1099 every year for interest earnings.  The interest earnings are taxed only when you withdrawal cash from the contract, often times at a lower tax bracket during retirement than when you were working.


4) AVOIDS THE PROBATE COURT SYSTEM

Annuity contracts have SUPERIOR beneficiary designations that cannot be superseded by any will or trust.  Your full account value will be paid directly to your beneficiary in a lump sum. Saving your family thousands of dollars from probate court and attorney fees.


5) GUARANTEED INCOME FOR LIFE

Your annuity contract provides you with the ability to guarantee a LIFETIME income stream; thus, protecting you from ever outliving your money.  This option can be elected by adding an income rider or simply annuitizing the contract.


6) SLOWS DOWN MEDICAID SPEND DOWN

In certain situations a person can slow down Medicaid spend down to qualify for assisted living and nursing home care.  You should consult with a medicaid planning attorney and your agent before attempting this technique.


7) HIGH RATE OF RETURN ON PRINCIPAL

Fixed annuities often pay 50 percent more interest than a bank CD and many offer an up-front bonus of 5 or 10 percent.


8) TRIPLE COMPOUND INTEREST

Because annuities grow tax deferred you will earn triple compound interest.  You will receive interest on your principle, interest on your interest and interest on money that would have been paid to the IRS for income taxes.


9) LIQUIDITY OPTIONS

Annuities have liquidity options that allow you to access your cash free of any penalty. Most contracts allow you to withdrawal 10% of your contracts value penalty free every year. While others also allow a cumulative withdrawal.  For example, 20% in the second contract year.


10) PROVIDES CONTRACTUAL GUARANTEES

Because annuities are contracts the issuing company has to make contractual guarantees.  For example, they must set a minimum interest rate, they must determine income pay out options and terminal illness and nursing home clauses.