Annuities Preparing for a secure financial future. FIN1763-2
We all dream of living comfortably in the future Your dreams of a comfortable, financially secure future for you and your family are as individual as you are. But if you re like most busy families, it s hard to find the time to think about tomorrow let alone achieving your long-term financial goals. More of us realize that unless we start to plan now, those faraway years will be here before we know it and we will be unprepared. But where do you start? How do you know if your savings will grow enough to help you meet your financial needs for the future? Preparing for your future may be easier with an annuity Whether you re preparing for retirement, leaving an inheritance, or another long-term savings goal, an annuity can help you get there. It may be one of the easiest ways to help you start a savings plan for your future or that of your spouse, children, or other beneficiary. Not only can an annuity help you save and grow your money faster than many alternative investments, it can also provide a guaranteed stream of income, should you choose that option. Contact your Allstate agency and ask for a complimentary review of your financial goals and objectives. This will help you to determine if an annuity is right for you. FIN1763-2 1
The future is in your hands: from payment to payout An annuity puts you in the driver s seat from initial payment to payout. Typically, you can choose how to make your payment, whether as a one-time deposit or a series of payments over a specified period of time. You can also select the length of time you want your money invested. At the end of your investment period, you can decide how you d like to receive your benefits: as a lump sum, as a regular payment for a specified period of time, or for your lifetime. Types of annuities An annuity offers you several ways to put your money to work. If you like the peace of mind of having a guaranteed interest rate, you may want to consider a fixed annuity. If you want more opportunity for growth, you may want to consider a fixed indexed, equity-linked, or variable annuity, depending on your savings needs and comfort with market fluctuation. For immediate income needs you may want to consider a single premium immediate annuity. Fixed Annuity n Earns a fixed interest rate n Less risk, guaranteed return Fixed Indexed and Equity-linked Annuties n Interest linked to a market index (such as the S&P 500 ) n Greater upside potential with downside protection Variable Annuity n Interest varies with market performance n Higher risk, greater growth potential Single Premium Immediate Annuity n Provides predictable guaranteed immediate income n No downside market risk Plan your future with confidence One of the more important benefits of an annuity is being able to convert your annuity into regular, guaranteed payments, known as annuitization. Knowing you will receive steady income payments to supplement Social Security or other retirement income sources can be reassuring as you approach retirement. It can also help you plan for the future with confidence, without the anxiety that you ll outlive your money. With an annuity, you can choose from a variety of payout options, depending on your situation, and the level of income you want to provide for your spouse, if married. You can also choose to receive your benefits over a specified number of years, or if you prefer, for your lifetime. The ability to create a stream of income from your savings to replace your paycheck when you retire is a big reason why many people choose annuities but it s not the only reason. FIN1763-2 2
Your savings has the potential to grow with tax deferral Annuities offer another key benefit: tax-deferred growth. This feature allows your money to grow faster than in a comparable taxable account. That s because you don t pay taxes on any earnings until you withdraw your money. This tax-deferred advantage can add up over time, particularly if tax rates increase, or your income tax bracket changes. Since taxes are due when you start receiving payments which can often occur when you are in a lower tax bracket this may minimize the amount of tax you will be required to pay. Access to your money if you need it While annuities are designed to be held for the long term, there are often ways to access your money without surrender charges before the end of your investment period. For example, you may be allowed to withdraw a certain percentage, like 10%, of the annuity value each year without incurring those charges. With an emergency waiver, if certain conditions apply, you can withdraw the entire available balance of your contract. Keep in mind that a 10% premature distribution tax penalty may apply to withdrawals taken prior to age 59½ unless an exception applies. 1 Although you may never need to make an early withdrawal, it s nice to know there are options available. Pass on more directly to loved ones Aside from helping to provide financial security in your retirement years, an annuity allows you to leave money to loved ones as well. If you should die, proceeds from an annuity are distributed to your beneficiaries free of the complicated and often lengthy legal process of probate, which can also be costly. That means more of your money can go directly to those you leave behind without hassle. With both of us working, it s hard to find time to plan and save for the future. Choosing an annuity made it easier. FIN1763-2 3
Is an annuity right for you? An annuity can help meet many types of financial needs for retirement, wealth transfer or other savings goals. Stop and consider whether your financial situation is similar to those below and how an annuity could provide you with valuable benefits. n You are interested in the advantages of tax-deferral. n You need a regular source of income that you will not outlive. n You have someone in your life who may need financial assistance after you re gone. n You are changing jobs or retiring and you would like to diversify your retirement savings. n You want to be able to access a portion of your money without surrender charges in case you need it. Annuities also provide more flexibility than you might think. Depending on the specific annuity you choose, you may be able to access your money when you need it or even replace the annuity entirely (fees may apply). Contact your local Allstate agency today Call your Allstate agency and ask about how an annuity can fit into your overall retirement savings plan, as well as which type of annuity may be right for you. Ask for a complimentary review of your current financial goals and objectives. Working with my Allstate agency, we determined which annuities best fit with my retirement goals. I can now face the future with greater confidence. FIN1763-2 4
We re the Good Hands of Allstate Allstate is in the business of helping protect what s important to you. And we have a strong tradition of being there when people need us. Today we offer innovative solutions and professional assistance to help you protect your family and achieve your lifelong dreams. With Allstate, you can feel better prepared and more in control of your future than ever before. This commitment can help ensure that your money is in Good Hands. To learn more, call or visit your local Allstate agency. 1 Distributions taken prior to annuitization are generally considered to come from the gain in the contract first. If the contract is tax-qualified, generally all withdrawals are treated as distributions of gain. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59½, may be subject to an additional 10% federal tax penalty. Standard & Poor s, S&P, S&P 500, Standard & Poor s 500 and 500 are trademarks of The McGraw Hill Companies, Inc., and have been licensed for use by Allstate Life Insurance Company and Lincoln Benefit Life Company. Annuities issued by Allstate Life and Lincoln Benefit Life are not sponsored, endorsed, sold, or promoted by Standard & Poor s, and Standard & Poor s makes no representation regarding the advisability of purchasing this product. One cannot invest directly in the S&P 500 index. Before investing in an annuity, you should carefully consider how interest is credited, as well as the risks, charges and expenses associated with the contract. Variable annuities are long-term investments designed for retirement purposes. Investors should consider the features of a variable annuity contract and the underlying portfolios investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained from your financial professional. Please read the prospectus carefully before investing. All guarantees are subject to the claims-paying ability of the issuing insurance company. Investment products and services carry risk including the potential for principal loss. This material is intended for general educational purposes only. Annuities issued by Allstate Life Insurance Company: Northbrook, IL, and Lincoln Benefit Life Company: Lincoln, NE. In New York, annuities issued by Allstate Life Insurance Company of New York: Hauppauge, NY. Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA). Registered Broker-Dealer. Member FINRA, SIPC. Main office: 2920 South 84th Street, Lincoln, NE 68506. 877-525-5727. Good Hands is a registered service mark of Allstate Insurance Company. Date of first issue: 5/11 2013 Allstate Insurance Company allstate.com FIN1763-2 12/13