Insurance Annuities

Minnesota Benefit Association offers a variety of annuities from highly rated insurance companies including Genworth Financial (formerly GE Financial), Mutual of Omaha, and others.

Why should you consider an Annuity?

  • Social Security and Pensions may not be enough to cover living costs after you retire. According to the Social Security Administration in 2002 the Social Security monthly check on average was $876.
  • Retirement plans, such as 401(k), are limited in the amount of money they can contribute.
  • Inflation and an increase in the cost of living can quickly deplete any retirement resources.
  • Even if people plan for retirement with the above items it is becoming more often the case that people outlive their savings.
  • Annuities are tax-deferred until you start taking money out of it.

What are the different types of Annuities?

Fixed vs. Variable Annuities

Fixed Annuity

  • Pays stable guaranteed rate of return
  • Monthly payment is set and guaranteed
  • You may want to consider this type of annuity if closer to retirement

Variable Annuity

  • Invests money in the stock or bond market
  • Assumes more financial risk for potential higher rate of return
  • Individuals who are younger and have more time to benefit from the stock market may consider this type of annuity

*MBA does not work with Variable Annuities

Deferred vs. Immediate Annuities

Deferred Annuity
  • Income taxes are deferred until withdrawal of money
  • No limits to annual annuity contribution-flexible payments
  • Death Benefit-your beneficiaries will not receive less than the amount contributed to the annuity

Immediate Annuity

  • Contribute one lump sum-single payment
  • Can begin receiving income almost immediately
  • Client can receive payments for the rest of their life

To learn more about annuities or to request an annuities quote, contact: or call 1-800-360-6117.