Annuities: guaranteed income, protected principal

What is an annuity?

An annuity is a contract with an insurance company. You give the carrier a lump sum or a series of payments, and in exchange the carrier guarantees future income — either for a fixed number of years or for the rest of your life. It is one of the few financial tools that can promise you won't outlive your money.

Annuities aren't right for everyone. They aren't a magic solution, and they aren't a scam — they're a financial tool that can be valuable for the right person at the right stage of life. We focus on fixed and fixed-indexed annuities because they avoid market risk and have clearer cost structures than variable annuities, which require securities licensing we don't currently hold.

Types of annuities we offer

We work with fixed and fixed-indexed products, where your principal is protected from market declines. The right type depends on whether you want a guaranteed rate, some market-linked upside, or immediate income.

• Multi-Year Guaranteed Annuity (MYGA) — the simplest type. You deposit money, the carrier guarantees a fixed interest rate for a set period, and at the end you take your principal plus accumulated interest. Functionally similar to a CD, but tax-deferred and often with more attractive rates.
• Fixed Indexed Annuity (FIA) — your principal is protected, so you can never lose money to market declines. Returns are tied to the performance of a market index up to a cap or participation rate: you get some upside in good market years and zero downside in bad ones. The tradeoff is that returns are capped, and surrender periods lock up most of the funds.
• Single Premium Immediate Annuity (SPIA) — convert a lump sum into guaranteed monthly income that starts right away, for a fixed period or for the rest of your life. It's the closest thing to a "personal pension" available in the marketplace.

Who is an annuity a good fit for?

Annuities tend to fit people who are conservative with their money, want a guaranteed rate of return or guaranteed lifetime income, and value principal protection over chasing maximum market upside. They generally make the most sense in the years immediately before or after retirement — too young, and you have time to grow assets other ways; too old, and surrender periods may outlive your access needs.

They do several things well: guaranteed income you can't outlive, tax-deferred growth until withdrawal, principal protection in fixed and indexed products, and predictable income for retirement budgeting. They're weaker on liquidity, inflation protection, maximum growth, and estate transfer. We'll tell you honestly which side of that ledger matters most for your situation.

How Honorbrook helps

We're an independent agency, so we don't push one carrier's product. We start with your goals — not a sales quota — and walk through whether an annuity even belongs in your plan. If it does, we compare fixed and fixed-indexed options across highly rated carriers, explain surrender terms, taxation, and tradeoffs in plain English, and share current rates and commission disclosure openly when you ask. If it doesn't, we'll say so. Our help is free, and everything can be handled by phone across the states where we're licensed.