There are two common types of annuities, deferred and immediate. These are Annuities still in the accumulating or preretirement stage and not yet paying income. Assets invested in a deferred annuity accumulate value on a tax deferred basis. These are annuities that pay an income one payment period after the lump sum deposit. When you purchase an immediate annuity, you exchange assets for a guaranteed income stream, structured to last over your lifetime or for a fixed period of time.
Annuities typically have two forms, Fixed and Variable.
Upon retirement, the policyholder is paid according to accumulated units whose dollar value varies according to the performance of the portfolio. Its objective is to preserve, the purchasing value of the annuity which otherwise is subject to erosion through inflation. Variable Annuities allow you to choose from alternative portfolios. Variable Annuities offer greater investment risk and the potential for higher return than do Fixed Annuities. The Lewer Agency, Inc. is licensed in all fifty United States and the ten provinces of Canada.