FAIC INSURANCE SERVICES
An FAIC Insurance Services, Inc. Program
A fixed annuity is a contract issued by the insurance company designed to help you accumulate funds for your retirement income. There’s no limit on your annuity contributions and you may invest in a fixed deferred annuity with either a single payment or flexible payments (a series of payments).
Some of the advantages of Fixed Annuities include:
- Safety: Principal are guaranteed1by the issuing insurance company.
- Fixed Interest Rate: Your money earns interest at a fixed rate that will never drop below a minimum rate guaranteed1by the issuing company.
- Tax deferred: Interest earned each year grows tax deferred, which means you don't pay taxes on your earnings until you withdraw money from your annuity. The taxes you would normally pay on interest earnings stay in your annuity and compound to help the value of your account grow faster.
- Access to money: Most annuities allow withdrawals at least once annually (usually up to 10% of the account value) without a withdrawal or surrender charge. Monthly withdrawals of interest and free withdrawals for special needs such as confinement to a nursing home are also widely available. Withdrawals may be taxable and a 10% penalty may apply to withdrawals taken prior to age 59½.
- Option to Annuitize for Life time income: Distributions can be spread out over a set period or may continue for the life of the annuitant and beneficiary2.
- Low Maintenance: No up-front Sales charge or maintenance fee3.
- Avoid Probate: If annuitant passed away while owning a fixed annuity, your money goes straight to the beneficiaries on your contract. Because the money doesn’t become part of your estate, it doesn’t go through probate (the legal process), where creditors and relatives can lay claim to it.
1. Guarantees are based on the claims paying ability of the issuing company.
2. Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation.
3. There are surrender charges which may be imposed generally during the first 5 to 7 years or during the rate guarantee period.
Insurance products are offered through FAIC Insurance Services, Inc., an affiliate of First American International Bank. First American International Bank is a wholly owned subsidiary of First American International Corp. FAIC Insurance Services, Inc. conducts business in English. Any non-English communications are a customer service accommodation. English-language documents and agreements will be controlling.
Insurance products are: •Not FDIC insured •May lose value •Not financial institution guaranteed •Not a deposit •Not insured by any federal government agency.
Our licensed financial professionals are licensed to conduct insurance business in limited states. Response to, or contact with residents of other states will only be made upon compliance with applicable licensing and registration requirements. The information in this website is for U.S. residents only and does not constitute an offer to sell, or a solicitation of an offer to purchase insurance products to persons outside of the United States.