Immediate and Deferred Variable Annuities

Western Benefit Solutions offers immediate and deferred variable annuities.

Immediate variable annuities
Immediate variable annuities can provide either a lifetime income, period certain income, or a combination of the two. Begin by making a single payment and invest your money in variable investment options or a fixed account. Your income payments begin immediately and could continue for the rest of your life, or longer, depending on the payout option you select. Meanwhile the money in your contract can continue to grow tax-deferred.

Deferred variable annuities
With deferred variable annuities, you can make a single payment or a series of payments, subject to the terms of your contract. A deferred variable annuity has two phases:

• Accumulation phase. - Your money grows tax-deferred in the investment options you choose. If the need arises, certain withdrawals are allowed. Keep in mind, as with all variable annuities, your withdrawals may be included in your taxable income, and prior to age 59 1/2 may be subject to a 10% federal tax penalty.
• Payout or income phase. - The payout phase refers to annuitizing your contract. During this phase, you begin receiving income payments. Depending on the payout schedule you choose, income may be paid a certain period of time, over a lifetime or a combination of the two.

Variable annuities are complex investment vehicles. Before you invest, be sure to ask your financial professional about the variable annuity's features, benefits, risks and fees, and whether the variable annuity is appropriate for you, based on your financial situation and objective.