Annuity education

How annuities work

Understand the accumulation and income phases, contract choices, liquidity limits, and the difference between guarantees and market-based outcomes.

Learn the mechanicsHow annuities work

The basic lifecycle

From contribution to income

  1. 01

    Fund the contract

    An annuity may be purchased with a lump sum or contributions, depending on contract design.

  2. 02

    Accumulate or begin income

    Deferred contracts may have an accumulation period; immediate-income contracts begin payouts sooner.

  3. 03

    Choose distribution features

    Income timing, beneficiaries, riders, and payout options depend on the contract and elections you make.

Know the tradeoffs

What to review in the contract

Surrender schedule

Understand what happens if you need to withdraw more than the contract permits during a surrender period.

Crediting or investment method

Fixed, indexed, and variable contracts calculate value differently and expose you to different risks.

Income elections

Lifetime, joint-life, period-certain, and other options can materially change payment amounts and legacy outcomes.

Personal guidance

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Important information

Educational content only. Insurance products, underwriting, premiums, contract provisions, exclusions, riders, availability, and guarantees vary by carrier, product, state, and applicant. Guarantees depend on the claims-paying ability of the issuing insurer. Educational content only. Investing involves risk, including possible loss of principal. Guardian Life & Wealth does not represent securities or advisory services as available unless the appropriately registered entity, professionals, agreements, disclosures, and product approvals are in place.