Products

Annuities

What Are Annuities?

An annuity is a contract between an insurance company and a policyholder. There are many different types of annuities, including the following:

Single Premium Immediate Annuity

A policyholder invests a single lump sum at the beginning of the contract. At that time a fixed monthly payment is "locked-in" and the investor receives that dollar amount every month until they die, or up to an agreed upon point after they die. The amount of the payment is determined by the initial investment, the age and health of the policyholder, and the point up to or following death the monthly payments will continue. At the end of the contract, payments stop. The initial investment is not returned. A portion of the income stream is tax free, based on the age at issue and the correlating exclusion ratio.

Single Premium Deferred Annuity

A policyholder invests a single lump sum at the beginning of the contract. At that time, a fixed rate of return and contract period is "locked-in." Unlike an immediate annuity, however, monthly payments do not start at that time. Instead, the investor receives a fixed amount at the end of the contract. Taxes are deferred until money is withdrawn.

Variable Annuity

Policyholders invest a single lump sum at the beginning of the contract. Policyholders are then allowed to hold and trade investment options within the annuity without paying taxes on gains until money is withdrawn.

Investors Who May Want to Consider Annuities

• People currently in a high tax bracket that anticipate being in a lower tax bracket when they retire.
• Those who want to guarantee a return and use the investment to generate income in the future.
• People interested in investing in the stock market but want principal protection.

What Northland Provides

• Guidance through the many complicated annuity options.
• Access to an array of different annuity options.
• Complimentary annuity policy reviews.

Northland Securities offers a wide array of fixed and variable tax-deferred annuities to meet your retirement income and portfolio protection needs. Please consult with a Northland Securities Representative for a review of your existing tax-deferred annuity benefits. Annuities are offered by prospectus, which provides information including benefits, fees and expenses.