Go Back Request Information Annuities An annuity is a contract between an individual (annuitant) and an insurance company. As with any contract, both parties have obligations. The annuitant agrees to pay the insurance company a single payment (in which case the annuity principal is created at once) or a series of payments (in which case the annuity principal is accumulated over time). The insurer invests the premiums and credits the contract with a stated rate of interest. The invested proceeds plus the accumulated interest create the annuity fund which the insurance company pays the annuitant an income, or offers various cash settlement options at a later date. Under current tax law, the money invested in an annuity grows on a tax-deferred basis, which enhances the growth. This means that 100% of your earnings are re-invested in an annuity and allowed to compound, or grow, without having to pay taxes on earnings until withdrawn. Fixed annuities were designed to limit the annuitant's risk by providing a guaranteed return. Fixed annuities have long been considered an alternative to bank CD's, often paying higher rates than CD's, while also deferring taxes. Please call or email for immediate attention and current interest rates. :: Go to Top :: 8152 S. Cass Avenue  |  Darien, Illinois 60561  |  Toll-Free: (800) 572-7512  |  Fax: (630) 963-2477 Email: info@kbfinancialinc.com  |  Privacy Policy  |  HIPAA  |  Legal Disclaimer ©2011 K&B Financial Inc., All rights reserved.