Frequently Asked Questions
1. What is an annuity?
An annuity is a long-term insurance product designed to help you accumulate assets or create income during retirement. You enter into a contract with an insurance company, and depending on the type of annuity, your money may grow at a fixed rate, be linked to a market index, or provide guaranteed income payments.
2. Are annuities guaranteed?
Certain annuities offer guarantees, such as guaranteed interest rates or guaranteed income. These guarantees are backed solely by the claims-paying ability of the issuing insurance company.
3. Do annuities have fees?
Many annuities include fees or charges such as surrender charges, administrative fees, or optional rider costs. We help you understand these details before you make any decision.
4. Can I lose money in an annuity?
Fixed annuities and fixed indexed annuities are designed to protect principal, subject to the claims-paying ability of the insurer. Variable annuities involve investment risk, but Elderberry Agency does not offer variable annuities.
5. How do annuities create retirement income?
Some annuities allow you to convert a portion of your savings into predictable income payments. These payments may begin immediately or at a future date, depending on the type of annuity.
6. What happens if I need access to my money?
Annuities are designed for long-term use. Early withdrawals may be subject to surrender charges and may also incur tax penalties if taken before age 59½.
7. Are annuities tax-deferred?
Yes. Earnings inside an annuity grow tax-deferred until withdrawn. When you take money out, withdrawals are generally taxed as ordinary income.
8. Do I need an annuity to retire?
Not necessarily. Annuities are one of many tools available for retirement income planning. They may be helpful for individuals who want predictable income or additional protection from market volatility.
9. How do I know if an annuity is right for me?
We review your goals, income needs, time horizon, and comfort with risk. If an annuity appears suitable, we help you understand the details so you can make an informed decision.
10. Does Elderberry Agency offer investment products?
No. Elderberry Agency is an insurance-only agency. We do not offer securities, investment products, or variable annuities.
11. What information do I need to get started?
Just a conversation. We’ll walk through your goals, current income sources, and any concerns you have about retirement.
Contact Elderberry Agency
Have questions about annuities or retirement income? We’re here to help.