Predictable income
Certain contracts can provide income for a defined period or for life, subject to contract terms and insurer claims-paying ability.
Guardian Life & Wealth
Annuity education
Potential benefits and important considerations
Annuities can add contractual income features to a retirement plan, but the benefits need to be weighed against liquidity, fees, complexity, and product-specific risks.
Benefits + tradeoffsPotential benefits and important considerations
Potential roles in a plan
Tax deferral
Non-qualified annuity earnings generally grow tax-deferred until distributed, subject to applicable tax rules.
Downside features
Some fixed or index-linked contracts include contractual floors, buffers, or other protections, with limits and conditions.
Beneficiary features
Many contracts include death-benefit or continuation options, though the details vary significantly.
Important considerations
Liquidity can be limited
Withdrawals may be restricted or subject to surrender charges, market-value adjustments, and tax consequences.
Some products can lose value
Variable and registered index-linked annuities can expose principal to market losses.
Fees can be layered
Contract charges, investment expenses, rider fees, and advisory costs should all be reviewed together.
Personal guidance
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Educational content only. Insurance products, underwriting, premiums, contract provisions, exclusions, riders, availability, and guarantees vary by carrier, product, state, and applicant. Guarantees depend on the claims-paying ability of the issuing insurer. Educational content only. Investing involves risk, including possible loss of principal. Guardian Life & Wealth does not represent securities or advisory services as available unless the appropriately registered entity, professionals, agreements, disclosures, and product approvals are in place.