Your Options
You've worked hard for what you have. Wouldn't you like the freedom to enjoy your retirement with
financial peace of mind?
Thinking of the future is the first important step toward achieving the security
you desire in your retirement years. It's smart to plan ahead and prepare now
for those special golden years of living out your dreams - whether that means
spending more time with your children and grandchildren, opening a small
antique shop, learning Chinese, taking an African safari, or moving to a cabin
along the shores of Lake Superior.
No matter what your retirement dreams are, the companies of Great American Financial Resources®,
Inc. (GAFRI), can help you realize them. However, before you can design a
comprehensive financial retirement plan that is personally right for you, it's
necessary to understand your options.
GAFRI's insurance subsidiaries and affiliated
companies specialize in all of the following products and services.
Below are some general questions and answers to give you introductory overviews
of the areas to think about as you plan for your future. By understanding your
range of options, you can then create the kind of safe, stable retirement -
including tax advantages - that you desire most.
What is an annuity?
An annuity is a contract that can make payments to you at regular intervals
based on premiums that you pay for the contract. The main reason to buy an
annuity contract is to obtain an income, usually for retirement purposes. You
can buy annuity contracts from life insurance companies and through other
financial services companies.
Currently, one of the advantages of an annuity is that the interest
credited to your annuity is completely untouched by federal income tax during
the accumulation period. As a result of tax-deferral, interest is compounded
and your investment can grow at a faster rate. You pay no taxes until you begin to
receive income payments or make a withdrawal.
Annuity income payments are often made in a lump sum or monthly, although other
frequencies are available. An annuity contract is not a life insurance policy
or a health insurance policy. It is not a savings account or savings
certificate, nor should it be bought for short-term purposes.
Learn more about Annuities.
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What is a group pension plan?
A group pension plan is an employer-sponsored retirement plan for employees.
Group pension plans can be set up for businesses, non-profit organizations, and
government entities. Establishing an appealing group pension plan can be an
essential factor in attracting high-quality employees in today's competitive
job market. Types of group pension plans available for small businesses include
SEP IRA, SIMPLE IRA, 401(k), and Profit Sharing Plan. Other plans like Employee
403(b), Employer 403(b), 457(b) Governmental, and 457(b) Non-Governmental are
designed for the non-profit and government sectors.
Learn more about Group Pension Plans.
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What is long-term care insurance?
Long-term care insurance is designed to help create a safety net of security if you
are no longer able to care for yourself at some point during your life. If you
suffer from a prolonged illness, disability, or cognitive disorder, long-term
care insurance can help provide financial support when you need it most.
Long-term care insurance provides for several different types of care in a
variety of settings. Additional benefits (e.g., meal services, transportation,
etc.) may also be available, depending on the type of coverage you select.
Learn more about Long-Term Care Insurance.
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What is life insurance?
Life insurance provides a cash death benefit to your beneficiary upon your
death to help meet a variety of financial needs. These financial
obligations might include covering immediate expenses after your death (e.g.,
funeral/burial costs), continuing payments of your mortgage and/or maintaining
your family's standard of living, or supporting your children's college
education. The two basic categories of life insurance are term and permanent.
Term life insurance, which provides coverage for a specific number of years, is
designed for someone with limited-term needs. Permanent life insurance, however,
would appeal more to an individual who desires coverage for his/her entire
lifetime. Keep in mind that no financial retirement plan is considered complete
without considering some kind of life insurance protection for your loved ones.
Learn more about Life Insurance.
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What is supplemental health insurance?
Supplemental health insurance fills in the financial gaps left by
traditional health insurance by paying for certain services and medical
treatments if you are diagnosed with a serious illness or have some kind of
accident. Numerous types of supplemental health insurance
policies are available, including cancer, heart disease, accident, and disability products. Some
supplemental health insurance benefits are standard while others may be
available through additional riders. Plans may provide for expenses related to
deductibles, child care, home recovery, experimental treatments, and the like – all
depending on the specific type of plan and riders you purchase.
Learn more about Supplemental Health Insurance.
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