Scherrer Financial Services offers fixed annuity contracts of several types in the state of Illinois. Fixed annuities are contracts with an insurance company that offer tax-deferred interest for a commitment of premium over time.  In general, fixed annuities offer certain minimum guaranteed interest rates, have limited withdrawal privileges, surrender charges for early withdrawals, and opportunities to receive payouts over a set period of time or life.  Many fixed annuities have provisions and riders that offer death benefits and free withdrawals for certain situations like confinement in a nursing home or terminal illness.

Immediate annuities require a payment of premium.  Then the annuity company makes regular payments back to the client.  Lifetime payments are guaranteed not to run out during the client’s life, or specific payments can be made for smaller periods of time chosen by the client.

Deferred annuities accumulate interest until a future time when the money is withdrawn in a lump sum or in payouts like immediate annuities.

Fixed annuities have a contract term and a guaranteed interest rate.  A type of fixed annuity is the fixed-index annuity.  These annuities earn interest based in part on the changes of a market index. However, the premiums are not directly invested in a market index.

Annuity guarantees are based on the financial strength and claims paying ability of the issuing insurance company. Withdrawals are subject to federal and state income taxes and prior to age 59 1/2 a 10% federal tax penalty may apply. Product availability and features may vary by state.  

No single product is appropriate for all situations. It is important to view and understand product information before making a decision to purchase. Scherrer Financial Services offers a wide variety of annuities with many different lengths, crediting methods, and bonuses.  

For more information about fixed annuities, follow this link www.factsaboutannuities.com