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Don't enroll in an annuity program until you've researched your options thouroughly. We encourage you to browse the topics below.


Genworth Financial Fixed and Variable Annuities

The mission of Genworth Financial is to help individuals and families reach their goals in a time of shifting financial burdens. One of the cornerstones they have formulated to achieve this goal are their annuity offers that cater to those who are planning for a financially safe retirement. Annuities are part and parcel of the favorable life insurance policies offered by Genworth Financial which come as a package that is easy to access. This means that while you earn your life insurance premiums, you also get to earn on the principal that has been agreed upon on your annuities. So the sooner you start to invest for your retirement the more you will earn once the disbursement period commences.

Genworth Financial issues four types of annuities all of which are designed to be flexible enough to cater for the personal and investment needs of individual annuitants and their beneficiaries. The fixed annuities are the ones that come with the lowest risk and as the name suggests the annuitants are disbursed a definite amount of money after an agreed and fixed period of time. Once annuitant buys their insurance policy and enters an annuity contract with the company, they agree to receive payments that can last for a pre-determined period of time and the agreed upon payments cannot be out-lived. The amount with which the annuitant will be disbursed is determined by a guaranteed interest rate and thus for the agreed period of time, the benefactor will receive the same amount of money.

The alternative to the fixed annuity option is the variable annuity in which the annuitant determines the methods through which his purchase may be invested. Thus once the annuity has been purchased, the principal amount is invested in underlying investment portfolios that may include bonds, shares or stocks as well as the money market. There is no fixed or guaranteed amount that can be paid out to the annuitant or their beneficiaries in the event that they seek to withdraw. The amount is fundamentally determined by how well the underlying investment performs and although this is a high-risk retirement investment option, there are great chances of high returns. Genworth Financial sells its variable annuities based on a prospectus that indicates the various options of investment portfolios, the risks involved, the investment companies and the fees involved. These are underwritten by Capital Brokerage Corporation in Indiana.

The third type of annuity is the deferred annuity that allows the principal investment to mature for a certain period of time after which it can be withdrawn. This is a long-term kind of retirement investment option that is purchased long before one reaches the retirement age. The maturity period can last as long as 20 years and given that this is a tax-deferred product, the annuitant is able to accumulate as much as they pay out. Upon withdrawal the annuitant and their beneficiaries will be taxed as per the tax income brackets dictated by federal laws. Deferred annuities can be fixed and variable but the annuitant decides the period of time after which they or their beneficiaries can receive the income.

Immediate annuities are the last type and as the name indicates, payouts on the principal invested commence within a year after the annuity is purchased. The lump-sum that an annuitant invests in their life insurance policy and annuity translates to an immediate payout that is largely determined by the prevailing interest rates. Immediate annuity can also be fixed or variable.