Immediate Annuity:

An immediate annuity is a contract that allows a purchaser to immediately begin receiving regular payments. To receive these ongoing payments, the purchaser must make an initial lump sum payment to the insurance company.

Variable Annuity:

A variable annuity is an insurance policy that allows the policyholder to receive a payment or series of payments at a later date. To receive those payments, the policyholder must make one or more initial payments. The issuer guarantees a minimum payout amount and the rest of the payout fluctuates based on how well the funds performed over the life of the annuity. Over the life of the annuity, the initial payments grow tax free. When the policyholder receives the payments at a later date, any amount greater than what the policyholder contributed is taxed at regular income rates instead of capital gains rates.

Fixed Annuity:

A fixed annuity is a contract that guarantees the purchaser fixed payments at a later date. The initial payments are also fixed. With a fixed annuity, the purchaser does not have to worry about how the performance of the stock market will affect their future income from the annuity because all of the rates and payments are set from the beginning of the contract.

Investors should carefully consider the investment objectives, risks, charges and expenses before investing. Obtain a prospectus and other important information pertaining to investment products from your registered representative. Read all prospectus and other important information carefully and before investing. Investing involves risk. Principal and investment return will fluctuate and may lose value.