At Twin City Underwriters, Inc. (TCU), we have been helping people make sound
insurance decisions for over 50 years. We understand the significance of protecting
what is important to you.
We have stable, long-term relationships with many leading insurance companies. We
use those relationships and our experience to walk you through the process of selecting
and applying for a suitable annuity. In addition, we provide ongoing customer service as
questions arise and your needs change.
Twin City Underwriters is committed to you, and to building a long-term relationship
that meets your needs.
WHAT IS an annuity?
An annuity is a legal contract between an insurance company and the owner of the
contract. An annuity can only be issued by a life insurance company and can only be sold
by a currently licensed life agent.
Annuities are not for everyone, but can be suitable for a sizable portion of society because of the many benefits they offer. Those benefits include:
- Safety from market risk
- No sales charges
- Tax advantages
- Bypass probate if beneficiaries named
- No medical underwriting
- Strong compounding interest rates
- Various withdrawal options
Common Terms to Know:
- Annuity: An insurance product which allows you to save for your future on an income tax deferred basis, and allows you to choose a payout option which meets your need for income when you retire – lump sum, income for life, or income for a certain period of time.
- Principal: The amount you pay into your annuity contract, not the earnings credited to it. May also be referred to as purchase payments or contributions.
- Multi-Year Guaranteed Annuity (MYGA): A type of fixed annuity that protects your premium and accumulates interest at a guaranteed rate for a specific amount of time.
There are many types of annuities. One type is a Multi-Year Guaranteed Annuity, or
MYGA. MYGAs typically have shorter commitment periods. A MYGA is appropriate for
someone who is retired or close to retirement, and who prefers tax deferral income
stability. Some other benefits include access to funds, tax deferral, very minimal fees &
charges and wealth transfer.
Our goal is to help individuals and families determine if they are a suitable candidate for
an annuity. To make this recommendation, our team will evaluate your financial
objectives, current financial situation, and investment or savings horizon.
Here are the fast facts on the MYGAs we offer:
- Rates are based on length of contract and the rate available at the time of purchase. Then, that rate is maintained. Note: Interest rates have been changing rapidly. Please call the office for the current rate.
- Current annuity rates exceed current local CD rates.
- Interest is compounded daily! Interest rates are quoted as annual effective yields.
- You do not pay taxes on the gains until you liquidate the annuity.
- Available for ages 18-85 years old.
- Minimum deposit is $10,000.
Maturing CDs, checking and savings accounts, money market funds, mutual fund
accounts, stocks and bond funds, IRA rollovers, treasury bonds and bills (plus many
more) are all kinds of funds that could go into an annuity.
At Twin City Underwriters, we know that individualized attention to a client’s personal
situation and needs are especially important, which is why we take the time to
understand you and your financial goals. Contact us to get started.
Who should buy an annuity?
If you are feeling stress from the up and down of the stock market, an annuity may be a good choice. In addition, if you have cash on hand that is earning minimal interest, but you know you won’t need the cash over the next 2 or more years, consider an annuity.
How much money do I need to invest?
At least $10,000.
What happens if I need my money?
There are rules around withdrawals that have to be followed, but you will start to receive some of your money within a month of buying the annuity. Generally, you are allowed to take out 10% per year. There can be extenuating circumstances that allow more to be withdrawn – call us for more information.
What happens if I die?
The beneficiary you choose will receive the full account value. If the beneficiary is a spouse, then the MYGA can continue with the spouse as the new owner.
What happens after the MYGA term ends?
You can reinvest some or all of your money and new earnings, or you can take the cash.
How do I move forward?
Call us! We will make the process as quick and as painless as possible.
DO YOU HAVE A CD RENEWING?
A multi-year guaranteed annuity (MYGA) may offer better accumulation and tax deferral. Short-term, single premium, fixed annuities – like MYGAs – are back! Our dedicated team of agents will help you navigate your retirement options and make the right choice for you and your family.