Annuities

An annuity is an insurance policy that protects you from outliving your money. Simply put, it can provide a future stream of income that can last your lifetime, giving you peace of mind that you won’t outlive your income.

Liberty Life offers two types of deferred annuities: a single payment deferred annuity (SPDA) and a flexible payment deferred annuity (FPDA). As with all deferred annuities, both of these products have two phases:

• The accumulation phase – This is when the value of the annuity grows.
• The payout phase – This is when the annuity provides a stream of income.

Because both products are deferred annuities, it means your annuity value grows tax-deferred. You won’t pay income taxes on the growth until you withdraw money from the annuity.

Offering safety, security and guarantees, an annuity can serve as a reliable retirement supplement without the risk of market fluctuations.

Deferred annuities offered by Liberty Life

Single Payment Deferred Annuity (SPDA)

A single payment deferred annuity is purchased with one lump sum payment. The annuity value then earns interest at a guaranteed rate. The growth on the annuity won’t be taxed until it’s withdrawn. Also, as the interest accumulates, it in turn earns interest, compounding the gains each year.

Flexible Payment Deferred Annuity (FPDA)

A flexible payment deferred annuity is funded by periodic payments. This may be a good solution for you if you don’t have a lump sum to purchase a SPDA. Payments to a FPDA may be made annually, semi-annually or quarterly. Because FPDA payments are made over time, interest rates are credited to each payment. The growth on a FPDA also grows tax-deferred.

For more information, contact a sales agent.

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Liberty Life Assurance Company of Boston, a member of the Liberty Mutual Group, issues Liberty Life’s Freedom Series Single Payment Deferred Annuity on policy form SPDA-200411 (SPDA-200411 NY in New York, SPDA-200411 NJ in New Jersey), and Liberty Life’s Freedom Series Flexible Payment Deferred Annuity on policy form FPDA-200460 (FPDA 200460 NY in New York). Product availability and features may vary by state. Liberty Life’s obligations under its life insurance contracts are guaranteed by Liberty Mutual Insurance Company. Home office: Boston, Mass. Service center: Dover, N.H.