Fixed Annuities

Our Alumni Insurance Program has added a product ideal for today’s low-interest environment: a fixed annuity. It’s designed to answer the question, “How can I get a better return without adding risk?” Rates on bank CDs are at historic lows, yet the stock market is too volatile for those seeking guaranteed income, such as for retirement planning.

A fixed annuity is like a bank CD, but provided by an insurance company, often at a higher rate. Money currently deposited in money markets and savings accounts would almost certainly yield higher returns in a fixed annuity, which is particularly ideal for conservative investors who otherwise might purchase CDs. In addition to an attractive interest rate, a fixed annuity provides:

• Guarantees. Your interest rate and, therefore, your earnings are guaranteed for the annuity term—even when stock and real-estate markets are down.
• Security. Your funds are protected by the full assets of a highly rated insurer.
• Tax advantages. Unlike a CD, interest accumulates tax-free until funds are withdrawn.
• Accessibility. Unlike a CD, specified withdrawals are permitted before maturity, without penalty.
• Free look. Unlike a CD, if you change your mind soon after purchasing your annuity, you can request a refund.

Today, you can lock in a competitive yield of 2.25% over five years.** Fixed annuity rates, like CD rates, are adjusted frequently. To lock in this rate, you must apply by 10/31/2010.* If you apply after this date, you will receive the rate in effect when your application is received.

For more information and to download an application, click here.

*Minimum purchase is $10,000.

**The 2.25% yield is comprised of a first-year interest rate of 2.65% and a 2.15% interest rate for years two through five.