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 from market declines by contract terms (subject to the issuing company’s claims-paying ability and to surrender charges if you withdraw early). Credited interest is tied to the performance of a market index up to a cap or participation rate, so you may share in some gains in good years, and index losses do not reduce your credited interest. 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: income options designed to last a lifetime (guarantees depend on the issuing company’s claims-paying ability), 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. If the money would come from a retirement account, see which accounts can be rolled into an annuity, and the trap for each.
Is an annuity right for you?
A free conversation about your retirement goals, current assets, and income needs — followed by honest advice, whether it includes an annuity or not.
Schedule a free consultationHow 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.