ANNUITIES

An annuity allows a customer to deposit money (premiums) with an insurance company that can earn interest and grow on a tax-deferred basis with the agreement that the insurance company will then provide a series of payments back to the customer at regular intervals.

People typically purchase annuities to provide or supplement retirement income they will receive from Social Security, pension benefits, investments and other sources. You can convert your annuity into a stream of income that can then be paid over a fixed period or for your lifetime. You can take withdrawals of varying amounts when you need the income.

There are generally two different types of annuities:

Immediate

Provides income payments that normally begin within a year after the premium is paid.

Deferred

Provide income payments that begin later, often after many years. Deferred annuities are designed for long-term savings purposes.

• Available to purchase using a single lump sum, or with flexible premiums over time.
• When it comes time to take income from your deferred annuity, you will have many options available to meet your needs.

Visit our Frequently Asked Questions

FIXED INTEREST RATE ANNUITIES

Offers

• Deposits accumulate at fixed rate of interest set by the company.
• Have a guaranteed minimum interest rate that will be earned.¹

INDEXED ANNUITIES

Indexed annuities do not directly participate in any stock or equity investments. Most indexed annuities permit owners to participate in only a stated percentage of an increase in an index, and also impose a “cap rate” that represents the maximum annual account value percentage increase allowed to contract owners. An investment cannot be made directly into an index.

Offers

• Interest is based on changes in a major index such as the S&P 500.²
• Over the long-term, an indexed annuity may offer the potential for greater earnings than a fixed annuity but may have years, when the index is down, when no interest will be credited.
• Downside protection through minimum guarantees¹ to ensure that your cash value will not decline due to decreases in the Index.

1. FootNote 1Guarantees are based on the claims-paying ability of the issuing company.
2. FootNote 2Standard & Poor’s®, “S&P®, S&P 500®, Standard & Poor’s 500, and 500 are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Life Insurance Company of the Southwest. The product is not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no representation regarding the advisability of purchasing the product.

Guarantees are dependent upon the claims-paying ability of the insurer and do not protect the value of the variable product portfolios, which may fluctuate. Variable contract holders are subject to investment risks, including the possible loss of principal invested.

National Life Insurance Company and Life Insurance Company of the Southwest, both members of National Life Group, offer various types of annuities, each designed to help meet specific personal and business needs and objectives. If you would like more information, please contact us.

Variable contracts are underwritten by National Life and distributed by Equity Services, Inc., Registered Broker/Dealer Affiliate of National Life Insurance Company, One National Life Drive, Montpelier, Vermont 05604.

7 Life Insurance Myths and the Truth

There are many myths when it comes to life insurance, such as "only healthy people can get coverage" or "it's too expensive!" Find the truth here. Read Article