Why Auto-Owners Annuities are Better
Than Certificates of Deposit (CDs)
By Dave McCormick, ChFC
Manager, Life Sales
Why would anyone, especially a senior, own an Auto-Owners annuity rather than a CD?
Because they simply work better!
Unfortunately, a CD is the first choice that many conservative savers make for their hard earned savings. Many savers are not aware of all the advantages of Auto-Owners annuities over CDs. Some mistakenly assume Auto-Owners annuities are associated with less safety, restricted access to funds, high fees, and high minimum deposits. Nothing could be further from the truth. ln order to better understand the benefits of Auto-Owners annuities let's focus on seven points that deal with these mistaken perceptions.
Reason #1
Auto-Owners invests in the most secure investments possible - The combination of U.S. Government Bonds and investment grade bonds represents over 73% of assets. We do not chase the latest fads developed by Wall Street. Rather, we stick with the investment program that has been successful for us over many years. Safe. Sound. Secure. is more than a phrase; it's our position and our promise.
Reason #2 Most CDs give a customer about five to seven days to withdraw or roll the money without a penalty at maturity. At all other times, a "significant penalty may apply". That penalty may be all, or at least, 90 days of interest. Like a CD, Auto-Owners annuities have a penalty for early surrender. But, unlike CDs, Auto-Owners allows up to a 10 percent withdrawal each year without penalty. Even better, for those ages 60 and greater, the surrender charge period is five years. Additionally, under certain conditions the surrender charge is eliminated due to critical illness or nursing home confinement. No problem access to funds makes Auto-Owners annuities better.
Reason #3
Auto-Owners annuities are better because they function better on important practical issues.
Reason #4 Often, seniors rely on the interest income on CDs for a portion of their retirement income. As the rate has recently dropped, so has their return, thus reducing their income. Our rate of interest is competitive and stable. Competitive and stable best describes our performance and makes Auto-Owners annuities better.
Reason #5 Not knowing how long their money will last is understandably frightening to many planning for and living in retirement. Auto-Owners annuities can guarantee a lifetime of worry free and hassle free income. Sure, CDs can provide funds until the funds run out; but periodic withdrawals are not available and CDs can't guarantee lifetime income. Auto-Owners annuities are better because they conveniently reduce, and even eliminate, the fear of living longer than income.
Reason #6 Taxes are due annually on CD interest whether or not a withdraw is made. On the other hand, interest on deferred annuities is only taxed as it is withdrawn. Tax deferral of interest and control over associated income tax make annuities better. Seasoned savers recognize the importance of controlling the negative effects of income tax. Auto-Owners annuities put the savvy saver in better control of tax on interest income.
Reason #7 Probate delays, cost, and public disclosure are all avoided using annuities. CDs not held in Trust don't offer an important benefit like this. Auto-Owners annuities are better because they avoid probate, with or without other estate planning.
Auto-Owners annuities are better...especially for seniors! Compare for yourself. Visit with your Auto-Owners Agent and together you can easily learn even more about annuities the Safe. Sound. Secure. Auto-Owners way. 13693 (12417)
Safety: Conservative investments plus the strength of Auto-Owners equals real peace of mind!
Liquidity: No problem! Auto-Owners annuities make funds available!
Practicality: Auto-Owners annuities are better by design!
Performance: Auto-Owners annuities are a quality investment!
Never outlive income: Only annuities can do this!
Manage Taxes Better: Annuities make retirement income go further!
Avoid Probate: Annuities are a valuable estate-planning tool!