Annuities
Turn part of your savings into predictable, tax-deferred retirement income with annuities from Maxwell Insurance Group. We help Idaho, Oregon, Washington, and Arizona families understand fixed, fixed-indexed, and immediate annuity options, including products from American National, a carrier with an A (Excellent) financial strength rating from AM Best. As an independent agency, we walk you through how each annuity works, what it does and doesn't do, and whether it fits your retirement picture, so you can make an informed decision alongside your tax and financial advisors.
What's Covered
- Fixed annuities with a guaranteed minimum interest rate
- Multi-year guarantee annuities (MYGAs) with a locked rate for a set term
- Fixed indexed annuities with principal protection and index-linked interest
- Single premium immediate annuities (SPIAs) for income that starts right away
- Deferred annuities that grow during an accumulation period
- Optional lifetime income and death-benefit features (riders may carry added cost)
- Tax-deferred growth on earnings until withdrawal
- Products from American National and other financially strong carriers
Who Needs This Coverage
- Retirees and near-retirees who want predictable, guaranteed income
- Savers who have maxed out 401(k), IRA, and other tax-advantaged accounts
- People who want to reduce their exposure to stock-market volatility
- Those looking to bridge income until Social Security or a pension begins
- Individuals seeking to leave a death benefit to named beneficiaries
- People comfortable setting money aside for years without needing quick access
Common Questions
What is an annuity?
An annuity is a contract between you and an insurance company. You pay a premium — either a lump sum or a series of payments — and in exchange the insurer agrees to provide growth and/or a stream of income payments back to you, depending on the contract you choose. According to the National Association of Insurance Commissioners, most deferred annuities have an accumulation phase, when your money grows, and a payout phase, when the insurer pays income to you. The exact terms vary by product and are subject to the contract's terms, conditions, and any applicable riders.
What types of annuities does Maxwell Insurance Group help with?
We focus on fixed annuities, fixed indexed annuities, and single premium immediate annuities (SPIAs) — including products from American National. Fixed annuities credit a guaranteed minimum interest rate; fixed indexed annuities offer principal protection with interest linked to a market index; and immediate annuities convert a lump sum into income that begins right away. Variable annuities, by contrast, are securities sold with a prospectus and regulated by the SEC and FINRA; they are a separate category we can help you understand but are not part of our core annuity lineup.
How are annuities taxed?
Earnings in an annuity generally grow tax-deferred, meaning you don't pay tax on the growth until you take money out. According to IRS Publication 575, withdrawals of earnings are taxed as ordinary income, and a 10% federal tax penalty may apply to the taxable portion if you withdraw before age 59½, with some exceptions. Annuities held inside an already tax-deferred account such as an IRA don't add extra tax deferral. Tax rules are complex and depend on your situation, so we always recommend confirming the details with a qualified tax professional.
Are annuities safe? Are they FDIC-insured?
Annuities are not bank products and are not insured by the FDIC, NCUA, or any federal government agency, and they are not bank guaranteed. The guarantees in a fixed or fixed indexed annuity are backed by the financial strength and claims-paying ability of the issuing insurance company — which is why the carrier's financial rating matters. American National, for example, holds an A (Excellent) rating from AM Best, the third-highest of its rating levels. We can review a carrier's ratings with you before you decide.
What is a surrender period, and how does liquidity work?
Most deferred annuities have a surrender period — often several years and sometimes ten or more — during which withdrawing more than a set amount triggers a surrender charge, and in some contracts a market value adjustment. Many contracts allow a penalty-free withdrawal of a limited amount each year. Because your access to the money is restricted during this period, annuities are generally suited to funds you won't need in the near term. Keep other liquid savings on hand for emergencies. Specific surrender schedules and withdrawal provisions vary by product and state.
How do I know if an annuity is right for me?
An annuity may be a good fit if you want predictable income or tax-deferred growth, have a longer time horizon, and have already funded other retirement accounts. It may not be the right choice if you need short-term access to the money or are uncomfortable with surrender periods. As an independent agency, we compare products and carriers, lay out the trade-offs clearly, and help you decide alongside your tax and financial advisors, with no obligation to buy.
Let's Talk About Your Retirement
Free, no-obligation consultation. We'll help you weigh whether an annuity fits your retirement picture — alongside your tax and financial advisors.
Licensed in Idaho, Oregon, Washington, and Arizona