Florida Annuities

Life / Term Life


There are two basic types of annuities:

  • Deferred Annuities
  • Immediate Annuities

With a deferred annuity, your money is invested for a period of time until you are ready to begin taking withdrawals, typically in retirement. If you opt for an immediate annuity, you begin to receive payments soon after you make your initial investment. For example, you might consider purchasing an immediate annuity as you approach retirement age.

The deferred annuity accumulates money while the immediate annuity pays out. Deferred annuities can also be converted into immediate annuities when the owner wants to start collecting payments!

Within these two categories, annuities can also be either fixed or variable depending on whether the payout is a fixed sum, tied to the performance of the overall market or group of investments, or a combination of the two.

Fixed annuities are essentially CD-like investments issued by insurance companies. Like CDs, they pay guaranteed rates of interest, in many cases higher than bank CDs.

Fixed annuities can be deferred or immediate. The deferred variety accumulates regular rates of interest while the immediate kind make fixed payments which are determined by your age and size of your annuity during retirement.

The convenience and predictability of a set payout makes a fixed annuity a popular option for retirees who want a known income stream to supplement their other retirement income!

A variable annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of investments, and then pays you a level of income in retirement that is determined by the performance of the investments you choose.

An indexed annuity is a tax-deferred retirement vehicle that allows you to choose from a selection of indices available in the United States stock market, and then pays you a level of income in retirement that is determined by the performance of the investments you choose. Compare that to a fixed annuity, which provides a guaranteed payout.


1. Safety

Unlike other types of annuities, the money in a fixed deferred annuity grows at a guaranteed minimum interest rate. That means your account value will never go down unless you choose to make withdrawals.

2. The opportunity to generate a stream of income for life

Fixed deferred annuities give you the choice to receive guaranteed payments for the rest of your life. This predictable income stream can help you plan for the goals you want to achieve during retirement.

3. Tax-deferred growth

The money in your annuity accumulates on a tax-deferred basis. That means you do not pay taxes on your earnings until you withdraw the money. Because of tax deferral, your money may grow faster in an annuity than it might in a similar, taxable investment.

4. A guaranteed death benefit

In the event of your death, your annuity's account value will be paid directly to your beneficiary.

5. Access to your money

With most fixed annuities, you can access a portion of your money each year after the first year without any withdrawal charges. And after a certain length of time, most fixed annuities will allow you to access your money whenever you choose or to receive automatic withdrawals without paying withdrawal charges. Finally, when you're ready, you can turn the value of your annuity into a guaranteed stream of income that will last as long as you live.

6. Security

Buying an annuity from a reliable company with a strong financial history gives you the confidence to know your money will be there when you need it.

7. Simplicity and transparency

With guaranteed rates and easy-to-understand payment options, fixed deferred annuities are one of the most straightforward retirement savings options available.

8. Timed payments to minimize taxes

To minimize taxes, you can time your withdrawals to begin in later years, when your taxable income may be less.

Insurance Warehouses of America can provide you further assist with questions regarding Florida annuities. Our licensed agents explain to you the different coverages that are applicable based on the company and the selection of choices that you can chose from!