What is an annuity?
An annuity is a contract which
provides for lifetime income. The Knights of Columbus offers two types, an
immediate and a deferred flexible annuity. During the accumulation period,
the annuity enjoys competitive rates on a tax-deferred basis. For current
Interest rates contact your Field Agent.
 Why
is tax deferral important?
Money in a tax-deferred annuity grows
faster than in a taxable account because interest earnings are not eroded
by current income taxes. The tax-deferred earnings remain in the account
to compound, providing growth on funds that would otherwise have been paid
in taxes. In addition, moving funds
from taxable vehicle to a tax-deferred annuity may reduce your
current taxable income. I
still pay taxes on this money, right?
Yes, you do. But you won't
pay until you decide to withdraw. And, by postponing withdrawals
until a time when your income tax bracket is lower, such as at
retirement, you may pay less in taxes. How
safe is an annuity?
The safety of an annuity rest
upon the financial strength of the issuing insurance company. The
Knights of Columbus has received the highest ratings possible: AAA
(Extremely Strong) from Standard & Poor's and A++ (Superior)
from A.M. Best year after year. We have been securing our clients'
financial future for more than a century. What
if I need money in an emergency?
Your annuity may be flexible,
so that you may add your annuity and make occasional withdrawals.
After the first annual contract date, up to 10% may be withdrawn
yearly from your K of C annuity without a surrender charge if its
accumulation is $5,000 or more. Remember, all withdrawals are
subject to ordinary income taxes and any applicable IRS penalties
if such withdrawals are made prior to age 591/2 What
happens if I die?
In the event of your death,
proceeds are payable to your beneficiaries free of probate costs
and delays. How do I receive
an Income?
Annuities offer a variety of
choices for the distribution of your proceeds. you K of C Field
agent can acquaint you with all the options. |
