Protection Benefits

Guaranteed* Income with Annuity Payments

Many people are concerned about outliving their retirement money.

Nobody can predict the length of their retirement or the exact amount of money they will need. With a fixed indexed annuity (FIA), however, you can plan for guaranteed* income for a lifetime. To plan for retirement, you need to find the balance between reward and risk, preserve your money, and grow it. So, receiving annuity payments from an FIA for the rest of your life may be worth considering.

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How Does a Guaranteed* Income Annuity Work?

Fixed indexed annuities are contracts that provide guaranteed* income for life. Initially, you deposit money into the annuity. When that occurs, you have a contract with the insurance company. With an FIA, the value is converted into set payments over time. Generally, it’s possible to set payouts to begin at age 60. The income payments are often higher if you delay your withdrawals.  The insurance company assumes the risk with an FIA. 

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Guaranteed* Lifetime Income Annuity Payout

An FIA provides a series of fixed payments made at regular intervals. They may provide additional benefits as well. For instance, if you have an income rider, you may notice an increase in your payment amount. We want to make sure that you can keep up with inflation and other cost increases.


When it comes to income riders, make sure you understand all costs, tax implications, and benefits. For example, taking money before age 59 1/2 may result in an additional 10% federal tax. Connect with us at Sonoma Financial & Insurance Services to explore whether guaranteed* income for life with an FIA is possible for you. 

Benefits of an FIA

In market downturns, FIAs protect your principal while providing growth potential in market upturns.


  • A lifetime of guaranteed* income 
  • Protects against market losses
  • Deferment of taxes
  • Contributions are unlimited
  • Interest earned from indexed performance
  • Protection of your beneficiaries

Surrender charge periods apply to annuities. These periods typically range from five to ten years. As long as you follow the terms of your annuity contract, you won’t lose any money. Any interest credited to the contract will be protected.

With a fixed indexed annuity, you are in control of your retirement income.  During the accumulation phase, your money grows. You start receiving annuity payments once the accumulation phase is over. They provide a guaranteed* income for retirement. And, the payments are based on the value of the contract.

There are two ways to receive annuity payments – payments or income withdrawals. Each type of payment is taxed differently. Annuities are paid annually. A portion of them may be tax-free* as well. Annuity payments may be refunded in some cases. The remainder may be taxed if interest is earned. Alternatively, you can withdraw your income and pay taxes at that time. For more information, contact a tax professional. You can ask our team any questions you have about a guaranteed* income annuity.

Your beneficiaries receive the money from a fixed annuity when you die. Income payments may also be made after death benefits are paid. Benefits can also be paid in one lump sum. Fixed indexed products may be beneficial for those who do not expect annuity income. Because of these benefits, some people choose an FIA even if they don’t intend to use it as income.

Contact us to find out if an FIA for guaranteed* Income is right for you.

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