An annuity is a long-term financial product designed for retirement purposes. In essence, an annuity is a contractual agreement which payment(s) are made to an insurance company, which agrees to pay out an income or a lump sum amount at a later date. Typically, annuities have mortality and expense charges , account fees, administrative fees, and charges for special contract features. In addition, annuity contracts have exclusions and limitations. Distributions taken to annuitization are generally considered to come from the gain in the contract first. If the contract is tax-qualified, all withdrawals are treated as distributions of gain. Withdrawals of gain are taxed as ordinary income and, if taken prior to age 59½ , may be subject to an additional 10% federal tax. Variable annuities are subject to investment risks, including the possible loss of principal investment.
Your clients should carefully consider their investment objectives and the charges, risks, and expenses of the variable annuities being offered as stipulated in the individual prospectuses, before investing. For prospectuses containing this and other information, please call the Sales Desk. Please encourage your clients to read it carefully before investing or sending money.
Annuity products are issued by Equitable Financial Life Insurance Company (NY, NY). Variable annuities are co-distributed by affiliates Equitable Advisors, LLC (members FINRA, SIPC) and Equitable Distributors, LLC.
For Financial Professionals Use Only. Not to be Distributed to the General Public.