What to Know About Annuities in a Long-Term Plan

Annuities are often discussed as part of long-term planning because they can serve a different role than life insurance. Rather than focusing on a death benefit, they are usually considered for income or accumulation purposes, depending on the product.

That makes it important to understand what an annuity does before deciding whether it belongs in a plan. For some households, it may be useful as part of a broader retirement strategy. For others, it may not be necessary at all. The right answer depends on the goals involved.

Because annuities can have tax implications, this is not tax advice. If you have tax questions, consult a competent tax professional. If legal issues arise, consult a competent attorney. The insurance planning question is whether the annuity fits the larger purpose of the plan.

A good plan should be built around goals, not product labels.

Book a call with us if you want help deciding whether an annuity belongs in your overall plan.

Request our free Long-Term Planning Product Comparison Guide to help you review the basics.