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Understanding Annuities and Insurance

Dreyfus1 offers several types of annuity and insurance products to help you reach your goals. If you're interested in adding an annuity and insurance product to your portfolio, take some time to consider the right type:

Variable annuities2 can provide you with after-tax returns greater than the rate of inflation over time. Variable annuities can complement your retirement holdings by providing additional growth potential, tax deferral and guaranteed income for as long as you live.3

Fixed annuities provide principal protection during periods of market volatility while offering competitive guaranteed2 interest rates on your initial premium.

Equity index annuities provide returns linked to a specified equity-based index, with a guaranteed minimum interest rate.

Immediate annuities ensure that you'll have an income for as long as you live.3

Single payment whole life insurance is also tax deferred5 and can be an efficient asset transfer vehicle that maximizes estate value while deferring income taxes on the growth of the single payment. Unlike traditional life insurance, the investor makes just one payment which buys a guaranteed death benefit that is guaranteed to be greater than the single payment.3

 

Principal value, income payments and investments returns of a variable annuity will fluctuate, an you may have a gain or loss when money is received or withdrawn.

Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax advisor prior to making a purchase for an explanation of the tax implications to you.

Annuities are not short-term liquid investments. 

Please be aware that tax laws may change which may impact the tax treatment of annuities. Consult your tax advisor for more information and details applicable to your situation. Withdrawals are subject to income tax. In addition, withdrawals made before age 59½ are generally subject to an additional 10% early withdrawal federal tax penalty.

1. Dreyfus refers to Dreyfus Service Organization, Inc., a licensed insurance agency.
2. Variable annuities are complex investment vehicles. Before you invest, be sure to ask your sales representative about the variable annuity's features, benefits, risks and fees, and whether the variable annuity is appropriate for you based on your financial situation and objectives. There is risk involved in investing in variable annuities, including possible loss of principal invested.
3. Guarantees are subject to product terms, exclusions and limitations and are based on the claims-paying ability and financial strength of the issuing insurance company.

 

Annuities and insurance products that Dreyfus makes available are issued by third party insurance carriers, which are not affiliated with Dreyfus. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Variable Annuities

A key to helping provide a secure financial future is to develop an investment portfolio that provides you with after-tax returns greater than the rate of inflation over time. Variable annuities may be a reasonable choice for helping you meet these goals.

A variable annuity is an insurance contract issued by an insurance company which can help you accumulate assets on a tax-deferred1 basis for retirement or other long-range goals. Variable annuities offer a choice of stock and bond sub-accounts, as well as a choice of fixed accounts in some cases.

Variable annuities add tax-deferred growth potential to your portfolio. They are long-term retirement products that offer a multitude of sub-account choices, tax deferral and protection against the possibility of outliving your resources.

With the probability of living longer, and the certainty of the effects of taxes and inflation, annuities can help address those variables that can affect your retirement income, as well as the possibility of outliving your retirement savings.

If you are looking for a long-term financial product with a multitude of investment choices, tax deferral1 and protection against the possibility of outliving your resources, consider a variable annuity.

 

Before purchasing a variable annuity, you should carefully consider its investment options' objectives, and the risks, charges and expenses associated with the annuity and its investment options. For this and other information, call Dreyfus at 1-800-896-2645 for a free prospectus or view one online. Read it carefully before you invest.

There is risk involved in investing in a variable annuity, including possible loss of principal. Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax advisor prior to making a purchase for an explanation of the tax implications to you.

Of course withdrawals or distributions may be subject to withdrawal charges and, if made prior to age 59½, a 10% federal tax penalty. Earnings are taxable upon withdrawal as ordinary income, not capital gains. You should consult your tax advisor for details applicable to your particular situation.

 

Annuities and insurance products that Dreyfus makes available are issued by third party insurance carriers, which are not affiliated with Dreyfus. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Fixed Annuities

Fixed annuities provide principal protection during periods of market volatility while offering competitive guaranteed2 interest rates on your initial premium.

They can anchor your overall financial portfolio with the stability of guaranteed principal and a fixed rate of return, provided that the contract is held until the end of the guarantee period and no distributions are taken.

At Dreyfus1, we offer you a range of fixed annuities from well-respected insurance companies.

 

1. Dreyfus refers to Dreyfus Service Organization, Inc., a licensed insurance agency.

Fixed annuities are available through Dreyfus Service Organization, Inc., a licensed insurance agency. All guarantees are based on the claims-paying ability of the issuing insurance company. Most annuities have a tax-deferred feature. So do many retirement plans under the Internal Revenue Code. As a result, when you use an annuity to fund a retirement plan that is tax-deferred, your annuity will not provide any necessary or additional tax deferral for that retirement plan. But annuities do have features other than tax deferral that may help you reach your retirement goals. You should consult your tax advisor prior to making a purchase for an explanation of the tax implications to you.

 

2.  Guarantees are subject to product terms, exclusions and limitations and are based on the claim-paying ability and financial strength of the issuing insurance company.

 

Annuities and insurance products that Dreyfus makes available are issued by third party insurance carriers, which are not affiliated with Dreyfus. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Equity Indexed Annuities

Equity indexed annuities provide returns linked to a specified equity-based index, with a guaranteed minimum interest rate. One of the most commonly used indices is the Standard & Poor's Composite Stock Price Index (S&P 500).1

If you are a conservative investor, looking for returns linked to the performance of an index, but with a guaranteed minimum interest rate,2 you might consider an equity-indexed annuity. You should make sure that you understand the features and benefits of this type of financial product.

You can lose money buying an equity-indexed annuity, especially if you need to cancel your annuity early. Even with a guarantee, you can still lose money. You may also be subject to surrender charges and tax penalties if you surrender your policy.

  

1. The S&P 500 is an unmanaged broad-based market index often representative of the stock market as a whole. An investment cannot be made directly into the index.

2. Guarantees are subject to product terms, exclusions and limitations and are based on the claims-paying ability and financial strength of the issuing insurance company.

 

Annuities and insurance products that Dreyfus makes available are issued by third party insurance carriers, which are not affiliated with Dreyfus. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Immediate Annuities

Immediate annuities can help you turn your assets into a source of regular income,1 and may be used to supplement the income that you will receive from Social Security, employer-sponsored retirement plans or any of your other investments and savings.

Immediate annuities (also known as "income annuities") are financial products that can ensure that you'll have an income for as long as you live and are frequently used as a solution for funding retirement. Serving as a kind of personal pension plan, an immediate annuity lets you convert a lump sum of money into a stream of guaranteed2 payments. Your payments may be fixed or they may fluctuate in value depending on the type of income annuity you choose.

How long the payments last depends upon the payout option that you select. Income payments can continue for the life (or lives) of the annuitant(s), for a certain period of time, or for a combination of the two.

If you are looking for a financial product that can ensure that you'll have an income for as long as you life, consider an immediate annuity.

 

1. Distributions may be taxable and, if taken prior to age 59½, may be subject to a 10% federal income tax penalty.

2. Guarantees are subject to product terms, exclusions and limitations and are based on the claims-paying ability and financial strength of the issuing insurance company.

 

Annuities and insurance products that Dreyfus makes available are issued by third party insurance carriers, which are not affiliated with Dreyfus. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.

Single Payment Whole Life Insurance

Single payment whole life insurance may be a smart choice when planning for the transfer of your hard-earned dollars to your loved ones. It offers a guaranteed return of principal and immediately increases the estate value to your heirs. Plus, it accumulates tax-deferred.1

1. Withdrawals or distributions may be subject to withdrawal charges and, if made prior to age 59½, a 10% federal tax penalty. Earnings are taxable upon withdrawal as ordinary income, not capital gains. You should consult your tax advisor for details applicable to your particular situation.

 

Annuities and insurance products that Dreyfus makes available are issued by third party insurance carriers, which are not affiliated with Dreyfus. Annuities are not appropriate for everyone. There are fees and charges associated with owning an annuity.