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How are annuities classified and which one fits you best

The financial decisions we make today determine our lifestyle in the future.

We all want to reach our retirement healthy and enjoy financial stability. Investment products, particularly annuities, are great tools for planning for a successful and prosperous retirement.

What are annuities?

An annuity is a contract between an insurance company and a person, made to increase your money and protect it without risk of losses at the end of the chosen term, that offers a guaranteed flow of income for a specific period of time or for life. In other words, an annuity gives you the opportunity to save for your future and ensure peace of mind for your retirement.

Types of annuities

Now that you know what annuities are and what they represent for your retirement, let’s talk about the different types of annuities and how they are classified.

· Fixed Annuity: your investment grows based on an guaranteed interest for a specific term.

· Indexed Annuity: offers an interest rate tied to the behavior of the stock market index. It has the potential to increase profit based on index growth and protects against market downturn.

What are TOLIC’s retirement plans?

Here are some details about our fixed and indexed annuities and the benefits each of them offers.

1. TOLIC’s Fixed Annuity: your investment grows based on a guaranteed interest for a specific term.

What should you know?

  • • The terms for this annuity are of 3, 5, 7, and 10 years.
  • It provides a death benefit equivalent to 101 % of the contract value, free of charge for settlement or adjustment to the market value.
  • It has a competitive and guaranteed minimum initial interest rate of 1.50 %.
  • It provides you with several payment options and a guaranteed lifetime income benefit.
  • You have access to 10 % annually of the premium penalty-free.

We recommend this annuity for you if:

  • you want to generate guaranteed interests for a specific term
  • you must transfer a lump sum payment from a retirement plan, a pension from a business, or an IRA
  • you want to contribute to an annuity because you have already contributed the maximum to your IRA or other qualified plans
  • you need income for your whole lifetime

2. TOLIC’s Indexed Annuity: potential to increase your profit, based on the growth of the market index.

What should you know?

  • The terms for this annuity are of 5 and 7 years.
  • Global investment in more than 2,500 companies and 48 countries.
  • Performance is based on S&P 500, MSCI EAFE, MSCI EM and Fixed Account.
  • Provides a death benefit equivalent to 101 % of the contract value, free of charge for settlement or adjustment to the market value.
  • Annual point-to-point returns are accredited.
  • The credit rate is based on the index, up to the cap rate.
  • The share of the index is 100 %.
  • Liquidity is 10 % of the premium per year limited to 50 %.
  • You have several payment options.
  • Lifetime income through the guaranteed lifetime income benefit.

We recommend this annuity for you if:

  • you want to participate in a portion of the increase in the growth potential of the stock market by eliminating downturn market risk
  • you must transfer a lump sum payment from a retirement plan, a pension from a business, or an IRA
  • you want to contribute to an annuity because you have already contributed the maximum to your IRA or other qualified plans
  • you need income for your whole lifetime

Protect your future with an annuity

Annuities have multiple benefits. In addition, they have advantages over other investment products, such as tax deferral, death benefits and availability. Start planning for your future today!

For more information, visit our website www.tolic.com or email us to contact one of our representatives (customerservice@tolic.com).). And find out why, at TOLIC, we Give you More for your IRA.

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