AIG.com Home Contact Us United States

AIG Tagline

Need more information?
  • Email or Call us Mon - Fri 6am-8pm EST
    USA: 877-638-4244
    Worldwide: +1-908-679-3150
annuity_small
Annuities

Annuities are tailor-made for providing guaranteed lifetime income. Technically, an annuity is a contract with a life insurance company, which in return for your investment agrees to pay income for a specified time or for your entire life. "Immediate annuities" pay income immediately. "Deferred annuities" defer the income phase, leaving time for an accumulation phase at a fixed rate (fixed annuities) or through investments in stocks and bonds (variable annuities). Growth on deferred annuities is tax-deferred, with income taxes due only when you take out money. (Note: A 10% federal tax penalty may apply to withdrawals taken before age 59½ .) Annuities generally provide other benefits as well, such as guaranteed death benefits and, with variable annuities, "living benefits" that can guarantee a potentially rising income that’s protected against market downturns. These benefits can guarantee retirement income as long as you live, or as long as you and your spouse live, regardless of market ups and downs. Living and death benefits may be optional, and available for an additional fee. Guarantees are backed by the claims-paying ability of the issuing insurance company.

combination_small
Combination
A combination annuity provides investors with the stability of a fixed annuity investment, as well as the potential for greater return with a variable annuity.
deferred_small.jpg
Deferred
A deferred annuity allows the investor to build the value of their account over time and convert it to income in the future. This type of annuity has two phases, the accumulation phase and the payout phase. For most people, the payout phase occurs during retirement.

fixed_small
Fixed

Fixed annuities are long-term retirement investments that offer tax deferral. It’s a contract where the insurance company pays a fixed rate of return.

immediate_income_small
Immediate
An immediate annuity allows the investor to receive income right away. The most common kind of immediate annuity is the Single Premium Immediate Annuity (SPIA). These are purchased by a single deposit and typically start paying out on a regular basis immediately after the date of the first deposit.

variable_small
Variable
Variable annuities are long-term retirement investments that offer tax deferral, a choice among variable-return investment options, optional features that can help protect against market volatility risk, and options that offer predictability of guaranteed lifetime income.