An Annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date. Annuities typically offer tax-deferred growth of earnings and may include a death benefit that will pay your beneficiary a guaranteed minimum amount, such as your total purchase payments.

There are generally two types of annuities—fixed and variable. In a fixed Annuity, the Insurance company guarantees that you will earn a minimum rate of interest on the Annuity during the time that your account is growing. The Insurance company also guarantees that the periodic payments from the Annuity will be a guaranteed amount per dollar in your account. These periodic payments may last for a definite period, such as 20 years, or an indefinite period, such as your lifetime or the lifetime of you and your spouse.

In a Variable Annuity, by contrast, you can choose to invest your purchase payments from among a range of different investment options, typically mutual funds. The rate of return on your purchase payments, and the amount of the periodic payments you will eventually receive, will vary depending on the performance of the investment options you have selected.

An Equity-indexed Annuity is a special type of annuity. During the Annuity accumulation period – when you make either a lump sum payment or a series of payments – the insurance company credits you with a return that is based on changes in an equity index, such as the S&P 500 Composite Stock Price Index. The Insurance company typically guarantees a minimum return on your Annuity. Guaranteed minimum return rates vary. After the Annuity accumulation period, the Insurance company will make periodic payments to you under the terms of your contract, unless you choose to receive your contract value in a lump sum.

Variable Annuities are securities regulated by the SEC. Fixed Annuities are not securities and are not regulated by the SEC. Equity-indexed Annuities combine features of traditional Insurance products (guaranteed minimum return) and traditional securities (return linked to equity markets). Depending on the mix of features, an equity-indexed Annuity may or may not be a security. The typical equity-indexed Annuity is not registered with the SEC.

At Cochrane Insurance & Annuity Services we can find the appropriate Annuity for your specific situation and need. We are contracted with the top Annuity providers combining superior customer service with exceptional Annuity performance that will last you a lifetime. Please contact us at 1-877-670-7526 or visit our website at www.Cochraneinsurance.com . Cochrane Insurance & Annuity Services is located in Yuba City, California serving the residents of the Yuba-Sutter area and beyond.