Annuities Explained

Annuities are flexible products and, depending on the type, can meet needs for protected lifetime income, growth and downside protection.

You purchase an annuity from a life insurance company. 
It can be a lump sum or multiple payments.

Your money can grow tax deferred until you withdraw it.1

Additional benefits of an annuity can include:

  • Protected lifetime income
  • Protection from market loss2
  • Guaranteed death benefit
  • A choice of income guarantees3
  • Access to your money4

You can convert your annuity into guaranteed income when you retire.
Payments can continue for a specified period of time – or you can choose an option for payments to continue as long as you live.

Certain types of annuities offer you the flexibility to receive guaranteed lifetime income while maintaining access to your money.

Connect with your financial professional to learn if an annuity is right for you.

Read more about lifetime income and annuity solutions


1 Qualified retirement plans also offer tax deferral.
2 May offer a fixed return or principal protection that avoids market downturns.
3 You can add enhanced lifetime income benefits for a fee.
4 May be subject to fees or limitations based on the type of annuity. See your advisor for details.

 Annuities are long-term financial products designed for retirement purposes. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Optional income protection features are subject to additional fees, requirements and other limitations. Keep in mind, for retirement plans and accounts (such as IRAs and 401(k)s), an annuity provides no additional tax-deferred benefit beyond that provided by the retirement plan or account itself. Contract and optional benefit guarantees are backed by the financial strength of the issuing insurer. The recipient should not construe any of the material contained herein as investment, legal, tax, accounting or other advice. The recipient should not act on any information in this document without consulting his or her investment, legal, tax, accounting and other advisors.

There is no guarantee that any investment will achieve its objectives, generate positive returns or avoid losses. Investments in annuity contracts may not be suitable for all investors.
This material has been prepared in conjunction with Milliman Financial Risk Management LLC (Milliman FRM). Milliman FRM retained Northern Lights Distributors, LLC, a FINRA/SIPC member, to facilitate FINRA review of the material in order to meet certain requirements of its business partners. Northern Lights Distributors, LLC is not affiliated with Milliman FRM or The Alliance for Lifetime Income.
AIG is a founding member of the Board of Directors for the Alliance for Lifetime Income.