life insurance anchorage ak

Call 907-201-3607


An annuity is a financial product that, when properly set up, can provide a regular stream of income for a specific period, or for the rest of your life. It is typically used as a retirement savings tool or as a means of generating a guaranteed income.  Annuities have been in existence since Roman times.  The word annuity originates from annua, or annual.  14th century annewytes, as they were spelled, were private annuities.  This highlights the basic human need to have an income.  Annuities are one way to fulfill this need.  

There are a variety of annuity types, but the basic three are:

  • Fixed Annuities: These annuities offer a guaranteed fixed rate of return for a specified period. They provide a stable income and are less affected by market fluctuations.
  • Variable Annuities: With variable annuities, the income stream is tied to the performance of underlying investment options, such as stocks and bonds. The returns can vary based on market conditions, offering potential for higher growth but also have greater risk.
  • Indexed Annuities: Indexed annuities provide returns based on the performance of a specific market index, such as the S&P 500 or Moody’s. They offer a potential for growth tied to market performance while also providing downside protection through a minimum guaranteed interest rate.
  • Immediate Annuities: Immediate annuities are purchased with a lump sum payment and begin providing income immediately or within a short period, typically within a year. They offer a predictable income stream for a specified period or for life.
  • Deferred Annuities: Deferred annuities are designed to accumulate funds over a specified period, allowing the money to grow tax-deferred until you choose to start receiving payments. They can be either fixed, variable, or indexed.
    Annuities provide a lifetime income stream by using the principle of pooling resources. When you purchase an annuity, your premium is combined with the premiums of other annuity holders and invested by the insurance company. The insurance company then guarantees a regular payment to you, either for a fixed period or for the rest of your life, based on factors such as your age, gender, and the terms of the annuity contract.


The lifetime income feature is particularly beneficial because it helps mitigate the risk of outliving your savings. With a lifetime annuity, you receive income for as long as you live, regardless of how long that may be. This can provide financial security and peace of mind during retirement, ensuring you have a steady income source to cover your expenses.


Reach out to me and ask me for a review to determine whether an annuity might be suitable to help you provide an additional retirement income stream that you can’t outlive, for your most basic expenses.