Guarantees are backed by the claims-paying ability of the issuing insurance company.
Annuities are long-term insurance products designed for retirement. In exchange for your premium, the issuing insurance provides a stream of guaranteed income payments. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract as well as the amount available upon cancellation of the contract/policy. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken prior to age 59½, an additional 10% federal tax may apply.