Guaranteed lifetime income can be delivered from many annuity types and can be used to cover expenses in retirement and mitigate longevity risk.
Funding retirement income through an annuity gives equity positions a longer investment horizon, mitigating sequence of returns risk.
The guaranteed income stream annuities can provide brings clients added psychological benefits like increased happiness and peace of mind.
Some annuities, in addition to providing guaranteed lifetime income, offer mechanisms to disperse that income tax efficiently.
Retirement Income Products
| Type | Summary | |
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| Registered Index Linked Annuity | Registered Index Linked Annuities (also known as Structured Variable Annuities or Buffer Annuities) are tax-deferred insurance vehicles that provide upside potential with a defined degree of downside protection. The investor assumes the portion of the market risk that is in excess of the "buffer" or the initial losses before reaching the... |
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| Deferred Income Annuity | A deferred income annuity is a contract funded with a lump-sum payment (premium) in exchange for guaranteed income payments at a future date. Also known as a longevity annuity because of qualified longevity annuity contract (QLAC) eligibility, a deferred income annuity can serve as a pension-like income stream for investors without a defined benefit plan through their... |
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| Fixed Index Annuity | Fixed index annuities are tax-deferred insurance products that provide market upside, while protecting principal from market losses. Assets are allocated into indices that are designed to replicate market performance. These fixed index annuity indices are typically accompanied with cap rates, spreads, or participation rates. |
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| Multi-Year Guaranteed Annuity | Multi-year guaranteed annuities (MYGAs) offer a tax-deferred guaranteed rate of return for the duration of the product. These simple, short-duration annuities are often used by advisors for fixed income allocations. |
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| Single Premium Immediate Annuity | A single premium immediate annuity is a contract funded with a single lump-sum payment (premium) in exchange for guaranteed income payments. Designed to supplement retirement income, a single premium immediate annuity insures the purchaser against outliving their money or exhausting it within a certain timeframe. A single premium immediate annuity... |
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| Variable Annuity | Variable annuities are tax-deferred insurance contracts with an underlying value that fluctuates based on the performance of the underlying investments. These products often offer insurance benefits such as guaranteed income or a death benefit. The ability to annuitize assets into a guaranteed lifetime income stream is the fundamental feature that qualifies a... |
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| Fixed Annuity | Fixed annuities are simplified products, offering a tax-deferred guaranteed fixed rate of return for a specified period. |
DPL members are turning to fixed indexed annuities to generate guaranteed income for their clients in retirement. Commission-Free annuities are an efficient way to deliver a retirement paycheck month after month, and provide clients with the peace of mind that they won't outlive their money.
Why DPL is a Fan of Annuities - Reason #2
DPL’s David Lau talks about the reasons why DPL believes that annuities are an important part of a client’s financial plan.
