Fixed Annuities
Fixed Annuities Tennessee – Safe Retirement Savings Options
When the future feels uncertain, it helps to know at least one part of your retirement is guaranteed. That’s what fixed annuities offer—reliable growth and income without the ups and downs of the market. For folks in Morristown and across East Tennessee, these annuities have become a trusted way to grow savings and plan for retirement with confidence.
Whether you’re near retirement or simply want to protect a portion of your nest egg, we can help you explore
retirement annuity options in Tennessee with guaranteed rates and clear terms.
Grow Your Retirement Without Market Worries
A fixed annuity is a contract with a life insurance company that allows you to earn a guaranteed interest rate for a specific number of years. Your principal is protected, your money grows tax-deferred, and you’ll know exactly what to expect—no surprises from stock market swings. These are great solutions for conservative investors or anyone nearing retirement who wants to shift from growth to protection.
For those in areas like White Pine, Russellville, or Talbott, where long-term planning is a priority, fixed annuities offer a stable alternative to more volatile investments.
How Fixed Annuities Work
With most fixed annuities, you make a lump-sum payment or series of payments to an insurance company. In return, your money grows at a guaranteed rate for a set period—often 3, 5, 7, or 10 years.
When your term ends (or even before, in some cases), you can:
- Withdraw your funds
- Take regular income
- Convert it to a
lifetime income stream through annuitization
All the while, your growth is tax-deferred—meaning you don’t pay taxes until you begin taking withdrawals. That can be a big help when managing retirement income.
We also offer
fixed indexed annuities in East Tennessee if you want growth potential tied to a market index, with no downside risk.
Why Consider a Fixed Annuity?
Fixed annuities come with real benefits, especially if you value safety, stability, and simplicity:
- Guaranteed interest: Know your exact rate of return
- No market exposure: You’ll never lose value due to stock market drops
- Tax-deferred growth: Delay taxes on earnings until withdrawal
- Potentially higher yields than CDs or savings accounts
- Options for lifetime income, either now or down the road
If you’re unsure where to park money after selling a home or receiving an inheritance—or just want a reliable piece of your retirement plan—fixed annuities can be the right fit.
Is a Fixed Annuity Right for You?
We commonly recommend fixed annuities to:
- Retirees and pre-retirees who want
principal protection
- Individuals who’ve
maxed out their IRA or 401(k) and want more tax-deferred savings
- Families looking to
preserve wealth after a windfall, business sale, or property transaction
- Anyone anxious about
market downturns and looking for a calm financial anchor
If any of those sound like you—or someone you care about—we’re here to walk you through it.
Annuity Options Through Trusted Providers
Unlike some agencies that only offer home and auto coverage, we’re licensed and experienced in financial products too. We partner with a range of reputable annuity carriers so you can compare competitive rates, terms, and options. We’ll explain all the moving parts—from surrender charges to income riders—in plain language so you can make a confident decision.
Our clients throughout
Hamblen County and surrounding areas appreciate having a local expert who isn’t tied to just one insurance company. We can build a plan that fits your timeline, income needs, and risk tolerance.
Let’s Talk About Your Retirement Income Strategy
You don’t need to figure this out alone. Whether you're looking for a tax-deferred annuity in Tennessee, a fixed indexed annuity, or a short-term guaranteed return, we’ll walk you through your options. Rates are strong right now, and fixed annuities are offering some of the best returns we’ve seen in years.
Let’s set up a no-obligation conversation. We’re here to answer your questions—without pressure—so you can decide if this fits into your bigger financial picture.
What’s the difference between a fixed annuity and a CD (Certificate of Deposit)?
They are similar in that both offer a fixed interest rate for a set period and are considered low-risk. Key differences: A fixed annuity is offered by an insurance company and grows tax-deferred (you don’t pay taxes on interest until you withdraw, unlike a CD where you pay taxes on interest annually). Annuities typically have surrender periods with penalties for early withdrawal beyond free amounts, similar to a CD’s early withdrawal penalty. Also, annuities can offer additional features like converting to a lifetime income stream, which CDs cannot. CDs are FDIC-insured (up to limits), while annuities are backed by the insurer’s claims-paying ability (and partially protected by state guaranty associations in case of insurer insolvency). Depending on your needs (e.g., if tax deferral or lifetime income is important), one might be better than the other – we can help compare.
What is a fixed indexed annuity?
A fixed indexed annuity (FIA) is a type of annuity that credits interest based on an external index performance (like the S&P 500) but with protection from downside – you never lose money due to the market. Essentially, instead of a flat fixed rate, your interest is tied to an index with a cap or participation rate. For example, if the S&P goes up 10%, you might get 5% (if there’s a cap at 5%). If the S&P goes down 10%, you get 0% (no loss). FIAs are popular for those who want potential for higher interest than a fixed annuity, without risking principal. We can discuss if an FIA suits your risk profile.
Are annuities liquid? Can I withdraw money if I need it?
Annuities are meant as mid- to long-term vehicles. They do have restrictions: typically there’s a surrender charge period (say 5-10 years) during which if you take out more than a certain amount, a penalty applies. However, most annuities allow some liquidity: commonly you can withdraw 10% of the account value per year without penalty (after the first year). Also, many have provisions to waive surrender charges if you’re confined to a nursing home or diagnosed with a terminal illness (specifics vary). And, of course, after the surrender period, you can withdraw without penalties. If liquidity is a big concern, we might choose a shorter term annuity or ladder multiple annuities. We’ll make sure you have emergency funds elsewhere and not tie up every dollar in an annuity.
What happens to my annuity when I die?
If you pass away with an annuity, what happens depends on how the contract is set up. Typically, if you haven’t annuitized (taken a lifetime income), the annuity’s account value goes to your beneficiary – usually avoiding probate, paid directly by the insurance company. They may take it as a lump sum or over a specified period depending on options. If you had started a lifetime income (annuitized) and chose a payout option with a death benefit (like a “10-year certain” or cash refund), then your beneficiary would still get payments or remaining value per that option. If you chose life-only with no beneficiary, then payments stop at death (that’s why many people choose options that protect their heirs). We will clarify beneficiary arrangements and recommend ways to ensure your money goes where you want after you’re gone.
Is there a minimum or maximum amount to invest in an annuity?
Minimums depend on the insurer – often it’s around $5,000 or $10,000. Maximums can be quite high, but large deposits (hundreds of thousands or more) might require insurer approval or be spread across companies. We also consider state guaranty association limits (in TN, the guaranty association might cover annuity values up to a certain limit per owner per company if an insurer fails; currently that’s $250,000 in present value of annuity benefits in TN). If you have a very large amount, we might split among insurers for that reason. We’ll guide you based on how much you’re looking to allocate. Even if you start with a smaller amount to “test the waters,” that’s fine – we can always help you add more later if the product allows or purchase another annuity then.
