What Are Annuities?

variable annuities

There are number of ways to provide yourself and your family with a financially secure future. One method is investing in annuities.

Annuities are contracts that the individual buys from an insurance company that requires the insurer to make payments, either immediately or in the future, depending on what the parties agree to. The types of variable annuities include:

  • Fixed annuity

    The insurance company ensures the buyer a minimum rate of interest and a fixed amount of periodic payments.

  • Indexed annuity

    The insurance company bases your return off of a stock market index, such as the Standard & Poor’s 500 Index.

  • Variable annuity

    Instead of having payments go straight to the insurance company, your money can be directed to different investment options, such as mutual funds. Your payout will instead depend on the amount you put in, as well as your return on investment.

Are Annuities A Good Investment?

Like all investment plans, the advantages of annuities are dictated by the individuals own set of financial circumstances. However, some benefits include:

  • Periodic payments for a specific amount of time

    If you would like you, or a loved one, to have a fixed amount of income for any period of time, this is an option worth consideration.

  • Death benefits

    If you die before you start receiving annuity payments, it’s possible to name a beneficiary to receive them instead.

  • Tax-deferred growth

    If you find yourself in a situation where you aren’t financially equipped to deal with taxes on certain income, the amount you place in your annuity can defer your tax payments until your annuity payment is withdrawn.


learn more about annuities

For more on how Oxenham Financial, LLC and O’Donovan Insurance, LLC can help your financial planning, call our team at 800-410-6333.

Christopher W. Oxenham is a registered representative of and offers securities through Securities America, Inc., member FINRA/SIPC. He is licensed to sell insurance in Maryland (MD), North Carolina (NC), Virginia (VA) and South Carolina (SC) and registered to offer securities in Maryland (MD), Virginia (VA), Texas, Utah (UT), North Carolina (NC), West Virgnia (WV), New York (NY) and South Carolina (SC) and advisory licensed in Maryland (MD) and Virginia (VA). Advisory services offered through Verus Capital Partners LLC. Verus Capital Partners LLC, O’Donovan & Associates Inc., O’Donovan Insurance, LLC and Securities America companies are unaffiliated.