What is an annuity?
Basically there are two types of annuities. The first is a Deferred annuity and the second is an Immediate Annuity. The literal definition of the word annuity is “payment stream for life.” However, most people are more familiar with the deferred annuity contract.
What is a Fixed Interest Deferred Annuity?
A fixed Interest deferred annuity is a Guaranteed Investment Vehicle offered by a Life insurance company designed to help clients grow their assets for retirement. The annuitant benefits from a guaranteed minimum interest rate, safety of principal, tax deferral and the ability to annuitize the contract into an Income stream they can’t outlive
The basic principal of income taxation is, the more you earn, the more you pay. This is where Presidential Life's deferred annuities can help you. One of the primary advantages of a deferred annuity is deferral of income taxation on earnings until you actually take your money out. Tax-deferral on earnings as your money grows means more income in retirement
Single Premium Deferred Annuities (SPDAs)
Presidential Life offers single premium deferred annuities (SPDAs), with current interest rate guarantees ranging from one to six years. All of these annuities are suitable for both qualified (IRA, tax-sheltered annuity, 401(k), pension, profit sharing) and non-qualified use.
Flexible Premium Deferred Annuities
Presidential Life offers flexible premium deferred contracts. The basic features of these contracts are similar to our SPDA contracts with the exception of the surrender periods and loan feature. All our flexible premium annuities allow you to make ongoing premium contributions into the contract, either on a fixed periodic basis, such as monthly, quarterly, semi-annually or annually, or on those occasions, when he or she has additional non-periodic funds for investment. Funds transferring from another financial institution receive the interest rate in effect at the time funds are received by Presidential Life.
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