Annuities

⭐ Reasons to consider a MYGA

✅ 1. Guaranteed Fixed Interest for Multiple Years

A MYGA locks in a guaranteed interest rate for the entire term (commonly 2–10 years).
This eliminates guesswork—no market volatility, no fluctuating returns, and no surprises.

✅ 2. Tax-Deferred Growth

Interest grows tax-deferred, meaning clients don’t pay taxes until they withdraw.
This allows their money to compound faster compared to taxable CDs or bank accounts.

✅ 3. Principal Protection

MYGAs are not tied to the stock market.
The insurer absorbs the investment risk, and the client’s principal can’t lose value due to market downturns.

✅ 4. Higher Yields Than CDs (Often)

MYGA rates are typically higher than traditional bank CDs, especially for longer terms.
Plus, interest grows faster due to tax deferral.

✅ 5. Predictable & Stable

Clients know exactly:

• the rate they’ll earn,

• how long it’s guaranteed, and

• what the contract value will be at the end of the term.
  This makes MYGAs ideal for retirement planning and income ladders.

✅ 6. Optional Free Withdrawals

Most MYGAs include features like:

• 10% free withdrawals each year,

• RMD-friendly withdrawals for qualified accounts.
  This gives flexibility without triggering surrender charges.

✅ 7. Competitive Alternative to Bonds or CDs

For clients nearing retirement, MYGAs often provide:

• higher guaranteed rates than bonds,

• no market risk,

• simpler structure than bond funds.

✅ 8. Easy Conversion to Lifetime Income

At the end of the term, the MYGA can be:

• renewed,

• transferred 1035 tax-free,

• or annuitized into guaranteed lifetime income.
  This appeals to clients who want a future income plan without committing on day one.

✅ 9. Strong Consumer Protections

MYGAs are backed by the insurer’s financial strength and state guaranty associations (subject to limits).
Clients often feel more secure with these protections vs market-linked accounts.

⭐ Who Should Consider a Flexible Premium Annuity?

✅ 1. People Who Want to Contribute Gradually

If someone prefers to add money monthly, quarterly, or irregularly, instead of one large upfront deposit, a flexible premium annuity is ideal.
It works well for:

• those building retirement savings over the years

• people who want to increase contributions as income grows

✅ 2. Pre-Retirees with Time to Accumulate

Flexible-premium annuities shine for those who still have:

• 10+ years before retirement, or

• a steady income and a desire to build future guaranteed income.

Longer accumulation phases give interest a chance to compound tax-deferred.

✅ 3. Individuals Seeking Tax-Deferred Growth

Anyone looking to shelter investment gains from taxes until retirement withdrawals should consider this type of annuity.
This is especially appealing if they already max out:

• 401(k)

• IRA

• HSA

A flexible premium annuity can act as an additional tax-advantaged bucket.

✅ 4. People Who Want a Future Guaranteed Income Stream

Clients who want to build toward:

• guaranteed lifetime income

• multi-year certain payouts

• or a stable retirement “paycheck”

…can use a flexible premium annuity to accumulate value gradually, then annuitize later.

✅ 5. Risk-Averse Savers

Since many flexible premium annuities offer guaranteed minimum interest or are tied to conservative crediting strategies, they’re good for:

• people who dislike market volatility

• those who want predictable growth

• conservative retirement planners

✅ 6. Anyone Who Needs Contribution Flexibility

Perfect for people with:

• variable income

• commission-based jobs

• or year-to-year financial changes

You can contribute more in strong years and scale back in lean ones.

✅ 7. Long-Term Financial Planners

A flexible premium annuity works well for individuals who want a structured, disciplined way to build retirement savings without requiring investment management.

Fixed Annuity vs. Fixed Indexed Annuity

1. What is a fixed annuity?

A fixed annuity provides a guaranteed interest rate for a set period. It’s simple, stable, and offers predictable growth with full principal protection.

2. What is a fixed indexed annuity (FIA)?

A FIA credits interest based on a market index. Your principal is protected, and you may earn higher interest than a fixed annuity, but returns vary based on caps and participation rates.

3. Is a FIA better than a fixed annuity?

It depends on your goals.

• Choose a fixed annuity for simplicity and guaranteed growth.

• Choose a FIA if you want market-linked upside with no market losses.

4. Who is a fixed annuity best for?

People who want:

• Predictable, guaranteed growth

• Low risk

• A straightforward, easy-to-understand product

5. Who is a FIA best for?

People who want:

• Potential for higher returns

• Protection from market downturns

• A longer time horizon and comfort with index-based crediting

6. How do I choose?

It comes down to risk tolerance and retirement goals. Sonon Insurance can help you compare both options and choose the right fit.

Zero! That’s right! We don’t have service fees for any of our annuity products.

GBU Life, Sentinel Security Life, Atlantic Coast Life, Oceanview Life and Annuity, Equitrust Life Insurance Company, Clear Spring Life, Axonic Insurance Services, National Life Group, Royal Neighbors of America, National Western Life. Global Atlantic Financial Group, Mutual of Omaha, Integrity Life Insurance Company, Corebridge Financial, Reliance Standard Life, American National Insurance Company, Securian Financial, Athene IA, Silac, Fidelity & Guaranty Life, North American, Allianz Life, Guaranty Income Life, Sagicor, American Equity Investment Life Insurance Company, American General Life Insurance Company, First Symetra National Life Insurance Co of NY, The Standard and Lincoln Financial.

Most annuities allow you to withdraw a portion each year, typically up to 10% of your contract value, without a surrender charge. Withdrawals beyond that amount during the surrender period may be subject to a surrender charge, which decreases over time, and in some cases a market value adjustment. We'll walk you through the specific withdrawal terms for any contract before you commit, so there are no surprises later.

Annuities generally pass to your named beneficiary outside of probate, which can make them a useful estate-planning tool. Depending on the contract, your beneficiary may receive the full account value, a guaranteed minimum death benefit, or the remaining payments in an income stream. We'll help you name and update beneficiaries so your annuity works the way you intend. Whether or not a death surrender charge is included depends on the carrier as it varies per carrier.

Taxation depends on whether your annuity is funded with qualified (pre-tax, such as IRA) or non-qualified (after-tax) money. Withdrawals from qualified annuities are generally taxed as ordinary income. For non-qualified annuities, earnings are typically withdrawn first and taxed as income, while your original contribution is returned tax-free. Annuities may also be subject to a 10% IRS penalty if withdrawn before age 59½. We recommend speaking with a tax advisor about how these rules apply to your specific situation.