Fixed
Interest is credited according to the contract, so values are predictable. Growth potential is generally lower than options tied to the market.
Annuities
Turn Savings Into Predictable Income
Annuity options to help protect principal or create steady retirement income.
To speak with a licensed insurance agent, call (662) 210-2200. TTY: 711.
The basics
What an annuity actually is
An annuity is a contract between you and an insurance company. You place money with the company, and in return the contract sets out how that money can grow and how it can later be paid back to you — often as income you cannot outlive.
It is not a bank product and it is not FDIC insured. Whatever the contract guarantees rests on the financial strength of the company issuing it, so the company matters as much as the features.
Types
The general categories
Annuities come in several broad types. Described generically, they differ mainly in how much market exposure you accept in exchange for growth potential.
Indexed
Crediting is tied to the performance of a market index, with some protection on the downside and limits, such as caps, on the upside.
Variable
Funds are invested in subaccounts, so there is more growth potential and more risk, including the possibility of losing value.
Fit
Who typically considers one
People most often look at annuities for two reasons: they are worried about outliving their savings, and they want a portion of their money less exposed to market swings than the rest of it.
An annuity is rarely meant to hold everything you have. It is usually one piece of a larger picture that also includes savings you can reach quickly. To speak with a licensed insurance agent, call (662) 210-2200. TTY: 711.
Before you apply
Tradeoffs to understand first
Surrender periods and early-withdrawal charges: most contracts expect the money to stay put for a number of years, and taking more than the allowed amount out early can cost you.
Liquidity: because of those limits, an annuity should not be the money you rely on for an emergency. Keep accessible savings outside the contract.
Income payout options: how and when the contract turns into income, and what a lifetime or joint guarantee does to the payment amount, should be clear to you before you sign anything.
Questions
Annuity questions we hear most
To speak with a licensed insurance agent, call (662) 210-2200. TTY: 711.
This page is general education, not a specific product recommendation or a promise of return. Speak with a licensed insurance agent about your full financial picture before applying.
Wondering whether an annuity fits? Let's talk it through.
No pressure, no obligation — just a conversation with a licensed insurance agent about the options available to you.
To speak with a licensed insurance agent, call (662) 210-2200. TTY: 711.
Medicare Compliance Statement
This website represents no obligation to enroll. Not affiliated with or endorsed by the government or Federal Medicare program. Magnolia Family Insurance is an independent insurance agency. We represent multiple insurance carriers to help you find the plan that best fits your needs.
Medicare has neither reviewed nor endorsed this information. As an independent agency, Magnolia Family Insurance offers comparison services to find the best plan for your needs from multiple carriers. For a complete list of available plans please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week, or consult www.medicare.gov.