Annuities and Colorado annuity rates

Annuities can be a great addition to your financial plan. Similar to insurance, annuities allow you to pay a monthly payment to a financial institution or insurance company, with the payment determined by how long you pay and the amount you wish to receive upon maturity.

Annuities are used to create a retirement income flow by making regular payments over a period of years when you are actively employed. There are generally two types of annuities: fixed and variable.

Fixed Annuities

In a fixed annuity, the insurance company or financial institution gurantees you will earn a minimum interest rate as your investment ages. They also guarantee your payments will be a guaranteed amount for each dollar in your account. The payments can be for a fixed period of time or an indefinite period, such as your lifetime. Fixed annuities are not securities are therefore are not regulated by the SEC. Fixed annuities are generally invested in lower interest bearing government bonds.

Variable Annuities

Variable annuities allow you to invest your payments in different investment options such as mutual funds. The interest rate your receive on your investment and also the retirement payments will depend on the performance of the underlying investment. Variable annuities are regulated by the SEC.

There are other types of annuities such as equity-indexed annuities that are a hybrid combination of fixed and variable annuities.

Is an annuity right for you?

Annuities are an excellent investment for people who believe they will outlive their retirement savings. Annuities guarantee a steady income for the rest of your life. The amount of the income payments are determined by how much you invest in your plan throughout your working years.

Income from annuities is tax-deferred until you begin making withdrawals from your account. Withdrawals before the age of 59 1/2 could be subject to surrender fees, a 10% federal tax penalty and also income tax.

When investing in an annuity, buy from reputable companies that maintain a solid financial rating.

You can also view the top Colorado companies for Auto Insurance, Home Insurance, Life Insurance, Health Insurance, Motorcycle Insurance and Business Insurance

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Colorado Insurance - Auto, Home, Life, more!

Find a Colorado Annuity Agent

    Some people prefer to work with a local insurance agent. Browse our Colorado insurance agency directory for a list of insurance agents near you.
Insurance Agents in CO
Farmers Insurance Group - Sales & Claims Offices- Daniel Deborah

121 South Crescent Drive
Pueblo, CO 81007

Farmers Insurance Group of Companies

1502 Santa Fe Drive
Pueblo, CO 81006

Dynamic International Funding

1240 South Parker Road Suite 100
Denver, CO 80231

Knights of Columbus Insurance

2701 West 84th Avenue Suite 204
Westminster, CO 80031

Parker-Douglas Insurance Inc

19555 East Parker Square Drive
Parker, CO 80134

Chapman Insurance Agency Inc - State Farm Insurance Agent

2335 East Evans Avenue
Denver, CO 80210

Community Banks of the Rockies

500 State Avenue
Alamosa, CO 81101

Healthsouth - Englewood- Healthsouth Rehabilitation Centers

7777 West 38th Avenue Unit A120
Wheat Ridge, CO 80033