Annuities

As your assets grow, so does your peace of mind.

Annuities

For over 100 years, people have counted on AAA to provide them with peace of mind when taking to the road. Now you can have that same sense of comfort in your retirement plan, with a fixed or indexed annuity.

A fixed annuity can provide a competitive fixed interest rate, a minimum interest guarantee for the life of your contract, and retirement income options that can be guaranteed to last a lifetime. An indexed annuity is another safe option that provides interest crediting strategies linked to a market index, such as the S&P 500, while also providing a minimum guarantee and a rider option that can provide a lifetime income.

Retirement gives you the time you've always wanted to travel and see family, but this freedom often comes with money worries. With our annuity choices it's easy to see how a tax-deferred annuity can help bring safety and stability to any retirement portfolio.

Learn more about the advantages and disadvantages of annuities. 

Learn how to beef up your retirement savings

Schedule a no-obligation consultation and receive a $10 Target GiftCard®

In the Phoenix area contact Jeff Stegge jstegge@arizona.aaa.com

In the Tucson area contact Mark Boskovich mboskovich@arizona.aaa.com
or you can speak with a AAA Financial Services agent by calling toll-free 1-888-870-9395

Retirement Options

Are you concerned about outliving your retirement funds? Learn why annuities may be a smart choice.

Running out of income during retirement is a great concern for many people as they enter into their golden years. As many people are no longer working, budgeting and planning becomes very important to maintaining a steady lifestyle. Annuities offer many options for a guaranteed lifetime income that may help you plan for your future. Your funds grow tax deferred during the accumulation years, and when you decide you need to start taking an income stream there are a number of options you may elect to guarantee yourself a lifetime of payments that you cannot outlive.

When purchasing a policy or converting an existing one into a lifetime income stream, there are many factors to consider.

Annuitizing your existing annuity can be done with most every annuity. This is a permanent decision which cannot be changed. The insurance company receives your funds, and in exchange makes payments to you for the remainder of your life or for the balance of your life with a guaranteed period-certain payout. Payments receive the benefit of the tax exclusion ratio so only a portion of your payments are fully taxed as interest earned. You may not access additional funds once you annuitize an existing annuity policy.   

Lifetime Income Riders are a popular choice to attach to a policy when purchasing an annuity. These riders provide a high rate of return during the accumulation years of the policy. At a later point in time when you need to start taking an income stream, you can turn on the guaranteed lifetime income payout without giving up full control of the funds in the account. Many policies allow you to start and stop this income stream if needed, and the funds in the account can still continue to grow. These payments are guaranteed for as long as you live, even if the account value drops to zero. Remaining funds in the account at death are passed to beneficiaries.  

For a no-obligation consultation of what your retirement savings could generate in Lifetime Income, contact us toll-free at 1-888-870-9395 or Schedule a no-obligation consultation

In the Phoenix area contact Jeff Stegge jstegge@arizona.aaa.com

In the Tucson area contact Mark Boskovich mboskovich@arizona.aaa.com

Asset Based Long Term Care

Learn about interest-bearing accounts with built-in Long Term Care coverage.

With many people self-insuring against future medical needs, newer hybrid Long Term Care (LTC) products are growing in popularity. These combination products, called “Asset Based Long Term Care,” combine a tax-deferred account with built-in Long Term Care coverage and benefits.

Traditional Long Term Care insurance policies require regular premiums be paid in order to keep the policy in force. Premiums can increase as you get older, and if you elect to stop payments your LTC coverage would end. Traditional polices do not build a cash value so if you stop payments, pass away or coverage is never needed in your lifetime, the payments you made are not reimbursed.

The new Asset Based Long Term Care policies work by making a single premium deposit into a fixed interest deferred annuity that combines Long Term Care asset growth and LTC benefits. This protection is built into the annuity, providing a combination of the annuity value and additional long term care benefits should you need them.

The way it works is your single premium grows as the accumulated value with a guaranteed minimum interest rate. It is this value that passes to your heirs at death (if you never need it for end of life care). 

At the same time, your premium grows at a second, higher interest rate for the Long Term Care accumulated value, the amount you would receive should you have qualified LTC expenses. The insurance company leverages these funds to create this larger Long Term Care benefits value which can grow to be two to three times the dollar value deposited, based on age and the years of coverage chosen.  

While this product is medically underwritten and requires you to qualify for coverage, there are minimal questions and no exams to take. A few other highlights to consider are:

  • If you don’t use the funds for Long Term Care, it remains an asset that can be left to your heirs. There’s no “use it or lose it” issue as found when paying premiums for traditional LTC insurance.
  • You don’t have to worry about rising premiums as you would with a normal LTC policy.
  • Unless the money used to pay for the policy comes from an IRA, all withdrawals to pay for care come out tax free.

If you have retirement savings set aside for future care needs that are currently invested conservatively in bank CDs, annuities, or money funds, now may be the time to “reposition” some of those retirement assets to do “double duty” as a source of funding for Long Term Care. Ask us about this new product and how it could benefit you call 602-230-3326 or email Jeff Stegge at jstegge@arizona.aaa.com