Annuity

An insurance product that pays an income benefit on a specific date, for a specific term, or for the lifetime of the person(s) receiving the annuity. Annuities are long-term investment vehicles designed for retirement purposes. Early withdrawals may be subject to surrender charges. Withdrawals are subject to ordinary income tax, and if taken prior to age 59 1/2, a 10 percent IRS penalty may also apply. Fixed annuities are not insured nor guaranteed by the FDIC. All guarantees are backed by the claims-paying ability of the issuing company.