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There are few better ways to save money for retirement than that of an annuity and at United Community Insurance we are ready to help those in Perham and Frazee and throughout the entire state of Minnesota start saving. Our representatives are very knowledgeable on the different aspects and types of annuities, and we will be able to find one that satisfies your needs.

What is an Annuity?

An annuity is a policy offered by insurance companies which allow you to pay into a fund that can be used towards retirement. This money can be paid to the insurance company through regularly structured payments or in a lump sum. One major benefit to investing in an annuity is the fact that it will continue to gain tax-deferred interest that can provide you with an additional income stream.

Types of Annuities:


Immediate Annuity

As the name suggests, immediate annuity plans begin to dispense payments immediately after the initial payment has been made. There are certain dependencies, such as whether the annuity is tax-qualified or non-tax-qualified, and these will determine if you will receive the entire payment or a tax-deducted portion.


Deferred Annuity

A deferred annuity is similar in structure to an immediate annuity with the difference being that the payments made into the policy are held for a period of time so that interest can collect in the account. In this case, you can dictate when you would like to start receiving payments.


Fixed Annuity

A fixed annuity is one in which there is a fixed interest rate on the money that is being invested, which most often comes in the form of a bond. The benefit to a fixed annuity is that there is usually a guaranteed interest rate that cannot decrease over time.


Variable Annuity

A variable annuity means that the interest rate on the money invested will vary with fluctuations in the market. Most typically these investments come in the form of stocks, mutual funds, or money markets.

As independent agents,

the professionals at United Community Insurance deliver a wide array of insurance options from some of the best companies in the Region.

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