An annuity is a financial contract you establish with an insurance company to receive regular payouts from your invested funds, either over a set period or for the rest of your life. You can fund an annuity with a single lump sum or by making monthly premium payments.

The five main types of annuities are:

• Fixed Annuity
• Fixed Index Annuity
• Deferred Annuity (DIA)
• Immediate Annuity (SPIA)
• Variable Annuity (We do not offer at Safe Money Mutual)

Annuities grow according to the terms set in your contract. For example, a fixed index annuity grows based on the performance of a specific stock index, like the S&P 500, while protecting your principal from market downturns. In contrast, variable annuities offer the potential for higher gains from stock market increases but come with the risk of losing part of your principal. Some annuities set a loss limit, capping potential losses during market declines. To reduce risk, you can also add an income rider, which provides additional income protection for your annuity.

If you want to cover final expenses or leave a financial legacy for your loved ones, annuities can be a reliable option. For example, adding a death benefit rider provides a lump-sum payment to a designated beneficiary after you pass away. Alternatively, you can structure your annuity to continue regular payments to your spouse or another beneficiary after your death. Since annuity payouts generally bypass probate, this can ensure your loved ones receive funds without delay. If your spouse is the beneficiary, they can also designate a new beneficiary to continue the legacy.

Making Retirement Planning Simple

Navigating retirement savings can be challenging. Whether you’re new to annuities or well along in the process, we provide tools and resources to support you at every step.

Support Every Step of the Way

We know that planning for your future is a big decision. Alongside an easy online experience, our team of annuity experts is here to answer your questions, handle the details, and help you make informed choices with confidence.

Trusted Options, Tailored to You

With access to a carefully curated selection of top insurance companies, you can choose from the best options available—pressure-free. Regardless of any commission we make.

In the accumulation phase, many fixed annuities come with a built-in death benefit rider at no extra cost. This means that if you pass away before your contract ends, the annuity’s account value, including any interest earned, will go directly to your beneficiary. For specific terms, please refer to the Death Benefit Provisions on each product details page.

If you select the Refund at Death option (also known as Death Benefit, Cash Refund, or Return of Premium) during the annuitization phase, any remaining value in the contract at the time of death—of both annuitants in a joint annuity—will be passed on to your beneficiaries. This remaining value is calculated as the original premium paid, minus the total income payments already received.

Annuities are classified as either qualified or non-qualified. Qualified annuities are purchased with pre-tax dollars, so all earnings are taxed as regular income when payments begin. Non-qualified annuities, on the other hand, are funded with after-tax dollars, and when payments start, only the earnings portion is taxed, not the principal. Be aware that if you withdraw more than 10% of the principal before age 59 ½, or if you delay required minimum withdrawals beyond age 72, additional tax penalties may apply.

Safe Money Mutual does not offer tax advice, so we recommend speaking with a tax advisor or attorney to fully understand the tax implications of your annuity purchase.

Insurance companies gather financial information—such as income, expenses, assets, and net worth—from individuals considering an annuity purchase. This helps them assess whether an annuity is a suitable option. Since annuities are illiquid, insurers want to ensure that buyers have sufficient liquid assets outside of what they’ll use to fund the annuity. This protects the insurer from any future financial problems.

The paperwork we submit to the insurance company includes a “request for transfer” form. The insurance company then sends this form to the financial institution holding your funds, initiating the transfer to the insurance company. This process typically takes 2–4 weeks, though timing may vary depending on the funding source. For instance, a 1035 exchange or transfer generally takes longer than a payment by check.

Your money is invested conservatively in the insurance companies’ General Accounts, largely in fixed income investments as well as in some equities. Importantly, they take on all of the investment risk.

While your current pension may be a good option, there may be alternatives that offer significantly higher payouts.Our team can help assess whether another option could be more beneficial or if your current plan is indeed the best fit for you. Often, a new top-rated plan can provide a higher payout than a company plan, though this isn’t always the case

As an independent organization, we partner with all top-rated companies in your state’s independent marketplace. Led by a certified financial fiduciary, we are committed to acting in your best interests and will present the best plans available in your area, regardless of any commissions we make. Our goal is to give you the top rated companies with the highest payout.

Here at Safe Money Mutual we work with top A rated carriers with proven track records and longevity in business. Very rarely does an insurance company fail but if an insurance company did go out of business, state agencies step in and protect the consumer. Like the FDIC, insurance companies are backed by the State Guaranty Association and protect consumers up to $250,000. This doesn’t mean a consumer would lose more than this. They will guarantee up to $250,000. Also have comfort in knowing that insurance companies are 10 times more solvent than banks. Financial institutions have to keep reserves on hand in order to protect consumers. Banks are allowed to keep as little as 10% in reserves where insurance companies are between 80%-100% in reserves. The more reserves an insurance company has the higher the rating. Have you ever heard of more banks failing or insurance companies?

Safe Money Mutual receives commissions from the sale of annuity products. These commission rates are generally determined by the insurance companies and are already included in the rates and quotes displayed on our site. There are no additional costs for working with us and not one dime comes out of your money invested.