ACLI is focused on ensuring that all Americans have greater access and choice to guaranteed lifetime income.
Scroll to explore how annuities empower people to build more financially secure futures.
ACLI hosted three LinkedIn Live conversations about how annuities provide certainty amid America's looming retirement crisis and to middle-market Americans and women in rural America.
Americans are living longer which means retirement planning is more essential and challenging than ever before. However, there is a product that guarantees you won’t outlive your savings. Annuities provide protected lifetime income, ensuring peace of mind and financial security through retirement.
An annuity is a long-term agreement (contract) between you and an insurance company. The company agrees to make a series of income payments to you in exchange for a premium (or premiums) that you pay. It allows you to accumulate funds on a tax-deferred basis for later payout in the form of a guaranteed income that you cannot outlive.
As with any major purchase or financial decision, it’s important to evaluate needs and options carefully. There are consumer protection standards and tools (at the federal and state level) available that provide simple and practical guidance about annuities.
For example, when buying variable annuities, companies are required to provide an SEC-approved prospectus in plain English with fee disclosures.
Several state and federal standards require consumers’ best interest be reflected in sales recommendations and strictly govern deceptive sales practices. In fact, salespersons have four obligations in putting your interests first and ensure transparency, honesty and clarity are present in interactions:
Salesperson must disclose, in writing, the material facts relating to the scope and terms of the relationship, and all material conflicts of interest associated with the recommendation.
Salesperson must establish, maintain, and enforce written policies and procedures reasonably designed to achieve compliance with Regulation Best Interest.
Material conflicts of interests must be identified, disclosed and mitigated.
Salesperson must exercise reasonable diligence, care, and skill.