The truth about annuities
You may be familiar with annuities, but you may also be surprised about what they can mean for your financial future. Take a look at some of the top annuity myths and the truth behind them!
Myth: Annuities lock up my money.
Truth: Annuities are designed as long-term savings vehicle. However, most annuities allow at least a certain percentage of money to be withdrawn each year without an early withdrawal charge.
Myth: Annuities won’t help supplement my income.
Truth: Annuities come with a variety of payout options that can provide a steady income stream. Additionally, an income rider may be added to a fixed-indexed annuity for an additional charge to help grow your income base and guarantee your income.
Myth: Annuities are too expensive
Truth: Generally, there are no maintenance or annual fees with a fixed or fixed-indexed annuity. Optional riders that provide additional benefits may be available for an annual charge.
Myth: Annuity guarantees are unreliable.
Truth: Annuity guarantees are backed by the claims-paying ability of the issuing insurance company. Accordingly, you should only purchase an annuity from a trusted, financially strong company.
Myth: If I have an annuity and I pass away, I’ll lose my money.
Truth: Many annuities provide a built-in death benefit that is paid directly to beneficiaries without the cost and delays of probate. If you pass away before benefit payments begin, your beneficiaries will receive the greater of the account value (minus applicable rider charges, taxes and loan balances) or the guaranteed minimum surrender value. If you pass away after the benefit payments begin, depending on the payout option you selected, your loved ones may continue receiving benefit payments for a specific number of years or for life.
Contact your financial professional for more information!
Withdrawals are subject to income tax, and if made prior to age 59½, may be subject to a 10% federal tax penalty.
Speak with an annuity expert for no pressure, thoughtful insight to help plan a perfectly protected retirement.
More About MassMutual Ascend
As a leading provider of annuities, we see our products as more than just contracts. Our annuities are transparent and easier to understand, so you always know what to expect.
At MassMutual Ascend, we offer a broad range of annuities to help meet your unique needs: immediate, fixed, fixed-indexed and registered index-linked annuities.