What are Great American Insurance Group fixed annuities?


Quick Answer

Great American Insurance Group fixed annuities are a financial product offering a guaranteed interest rate throughout the life of the product, according to Great American Insurance Group's official website. These investments allow a consistent return payment without regard for market conditions or other outside influences.

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Full Answer

Great American Insurance Group offers annuity plans with a single premium payment or multiple payments allowing clients to fund a current or future source of reliable income. Annuities provide lifetime income based on a fixed interest rate paid to the beneficiary. These plans allow payment deferrals so beneficiaries can control when payments begin, explains Great American Insurance Group. Increasing life expectancy means retirees are spending more time in retirement and likely need consistent savings over a longer period of time.

Annuities provide investors with other unique benefits, reports CNN Money. Taxes on the balance are deferred until payments are received from the fund. Funds contributed to the annuity grow tax-free, and annuity income complements other retirement plans and payments such as Social Security. Contributions to annuity funds are unlimited, unlike many retirement accounts such as 401(k) and IRA accounts. While many annuity beneficiaries choose guaranteed payments, lump sum payments are also available when the annuity investment matures.

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