Annuities | LH Vitality
Retirement Income Solution

Annuities

Turn savings into guaranteed lifetime income with fixed and fixed indexed annuities. Enjoy principal protection with tax-deferred growth and predictable payments you can't outlive.

What Are Annuities?

Annuities are long-term financial contracts designed to provide guaranteed income, typically during retirement. You make a lump-sum payment or series of payments to an insurance company, and in return, they promise to make regular payments to you, either immediately or in the future.

Annuities provide peace of mind by creating a predictable income stream that you cannot outlive, protecting against longevity risk—the risk of outliving your savings.

Key Benefits

  • Guaranteed Lifetime Income: Payments continue as long as you live
  • Principal Protection: Your initial investment is protected from market losses
  • Tax-Deferred Growth: No taxes on earnings until you receive payments
  • Customizable Options: Choose when and how you receive income
  • Inflation Protection: Optional riders to increase payments over time
  • Death Benefits: Pass remaining value to your beneficiaries

Who Needs Annuities?

Annuities are ideal for individuals approaching or in retirement who want to ensure they won't outlive their savings and desire predictable income.

Perfect For:

  • Retirees: Replace paycheck with guaranteed income
  • Pre-Retirees: Lock in growth before retirement begins
  • Risk-Averse Investors: Protect principal from market volatility
  • Pension Maximization: Supplement or replace pension income
  • Long-Term Care Planning: Fund future care needs
  • Legacy Planning: Ensure income for surviving spouse
Note: Product features and availability vary by state and carrier. We'll review details and disclosures during your consultation.

The Three Pillars of Retirement Security

Annuities complement Social Security and pensions for complete retirement income

Social Security

Government-provided base income that typically replaces 40% of pre-retirement earnings

Pension Plans

Employer-sponsored defined benefit plans (becoming less common)

Annuities

Personal pension you create with guaranteed lifetime income

*Together, these three sources create a stable retirement income foundation that can't be depleted.

Why Choose Annuities

Security and predictability for your retirement years

Principal Protection

Your initial investment is safe from market downturns with fixed annuities

Lifetime Income

Guaranteed payments for as long as you live, eliminating longevity risk

Growth Potential

Fixed indexed annuities offer market-linked growth with downside protection

Contractual Guarantees

Legally binding promises from highly-rated insurance companies

Fixed vs. Fixed Indexed Annuities

Choose the right type for your retirement goals

Features
Fixed Annuities
Fixed Indexed Annuities
Principal Protection
100% Guaranteed
100% Guaranteed
Growth Potential
Fixed interest rate (guaranteed)
Linked to market index with caps/participation rates
Market Risk
None
None (principal protected)
Best For
Conservative investors who want predictable returns
Moderate investors wanting upside potential with protection
Income Options
Immediate or deferred, lifetime or period certain
Immediate or deferred, lifetime or period certain

Strategic Applications

How annuities solve common retirement challenges

Income Replacement

Replace your paycheck with guaranteed monthly income that continues for life, regardless of market conditions.

Longevity Protection

Eliminate the fear of outliving your savings with lifetime income that cannot be depleted.

Risk Management

Protect a portion of your retirement portfolio from market volatility while maintaining growth potential.

Spousal Protection

Ensure your spouse continues to receive income after you're gone with joint and survivor options.

Frequently Asked Questions

Answers to common questions about annuities

How much income can I get from an annuity?
Income depends on several factors: your age, the amount invested, interest rates, and the type of annuity. Generally, a 65-year-old can expect monthly income of 5-6% of the premium. For example, a $100,000 annuity might provide $500-$600 per month for life. During our consultation, we'll provide personalized illustrations.
What are the fees associated with annuities?
Fixed annuities typically have no explicit fees—the insurance company makes money from the spread between what they earn and what they pay you. Fixed indexed annuities may have surrender charges if you withdraw funds early (usually 5-10 years) and optional rider fees for enhanced benefits like income guarantees or long-term care coverage.
Are annuities taxable?
Annuities grow tax-deferred, meaning you don't pay taxes on earnings until you withdraw money. When you take income, it's taxed as ordinary income on the earnings portion first (last-in, first-out). If purchased with after-tax dollars, a portion of each payment is considered return of principal and not taxed.
What happens if the insurance company fails?
Annuities are backed by the claims-paying ability of the issuing insurance company. We only work with highly-rated carriers (A or better). Additionally, state guaranty associations provide backup protection (typically $250,000-$500,000) if an insurer becomes insolvent.
Can I access my money in an emergency?
Most annuities allow annual penalty-free withdrawals of up to 10% of the account value. Many also offer nursing home or terminal illness waivers. However, we recommend keeping emergency funds separate and using annuities specifically for long-term income needs.

Create Your Personal Pension Plan

In a 30-minute consultation, we'll show you how annuities can provide guaranteed lifetime income, protect your principal, and give you peace of mind in retirement.

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