Annuities

AAA offers both deferred and immediate annuities.


Deferred Annuities
With a deferred annuity you can earn interest on your money now and pay taxes later.

Is a Deferred Annuity right for you?

A deferred annuity lets you earn a guaranteed interest rate on your money and delay the payment of income until you’re ready to receive it.1 This allows you to protect your principal and help grow your money during that time. It can be an excellent addition to a retirement investment portfolio.
A deferred annuity will also let you:
  • Ease the worry of the ups and downs of the stock market
  • Provide an income for yourself that you can never outlive
  • Grow your earnings tax deferred
  • Transfer/Rollover funds from a matured CD or lump sum distribution
  • Establish or transfer an existing IRA or Roth IRA2
 Have an agent contact me about Deferred Annuity
How do our Deferred Annuities work?

Our deferred annuities allow you to reduce your tax burden by earning tax-deferred growth on your annuity.1 Tax deferral helps an annuity grow at a faster rate than taxable interest accounts like money market funds and certificates of deposit because your money grows in three ways—your premium earns interest, your interest earns interest, and the money you would have paid in taxes remains in your account to earn interest. Current tax laws allow for the deferral of income taxes on an annuity's earnings until they are withdrawn.

You can ensure your principal is safe with a guaranteed minimum rate of return. In addition, you can gain access to funds if needed. Although deferred annuities are designed to be long-term retirement accumulation vehicles, we know there may be times when you need access to your funds earlier than expected. With that in mind, you'll be glad to know that all deferred annuities offered through AAA Life include a withdrawal provision.

AAA Life Insurance Company offers several annuity options, each with unique features. Choose the option that best fits your specific retirement goals and needs.

EliteGuarantee Annuity

You should consider an EliteGuarantee annuity if you want to make a single premium payment and lock-in an interest rate for more than one year. The EliteGuarantee annuity provides you with a 3-year guaranteed interest rate. Once the initial rate guarantee period expires, you have the option to renew for the same period of time.

Platinum Bonus Annuity

Our Platinum Bonus annuity features a competitive fixed interest rate that’s guaranteed for the first 12 contract months3. Keep in mind that the 1st year rate you'll earn is based on the amount of your initial premium and includes a first-year bonus rate. Flexibility of premium payments is another key feature. You can decide when you add to your annuity without having a fixed schedule to do so.


Immediate Annuities
With an immediate annuity from AAA Life you can guarantee an income stream for life.

Is an Immediate Annuity right for you?

An immediate annuity1 offered through AAA Life Insurance Company helps provide protection against outliving your assets. The annuity allows you to invest a single lump sum of money and immediately turn it into a guaranteed income stream.
An immediate annuity might be a good fit if:
  • You are retired and need to cover fixed or regular expenses.
  • You want to provide an income you can never outlive, guaranteed.
  • You want to provide an income for yourself and your spouse for life.4
 Have an agent contact me about Immediate Annuity
How does our Single Premium Immediate Annuity work?

AAA Life offers the Single Premium Immediate Annuity (SPIA) which can help put your retirement planning on auto pilot. You decide the amount and time period during which you wish to receive income–and we’ll determine the single premium amount that will help see that your goal is met. Once your annuity contract is put in place, just sit back and relax.

Payments received from a SPIA have been designed to return your premium in equal tax-free amounts over the income period you select.5 Minimum initial deposit is $5,000.

  • Distributions are based on your age and the income option you choose.
  • Adjust both your income stream duration and premium until you arrive at just the right combination to meet your needs.
  • Premiums are returned in equal tax-free amounts.5
  • May be eligible to receive a bonus when using an existing AAA Life deferred annuity to purchase a SPIA.

Disclaimers & Disclosures

1Annuities are not considered short-term investments. Surrender charges may apply, and the fees and charges associated with a fixed-rate annuity are usually higher than other investments like certificates of deposit. Under current tax law, earnings withdrawn before age 59½ may be subject to IRS penalty. Withdrawals exceeding 10% of the accumulation value are also subject to a contractual withdrawal schedule included in each contract.

2IRAs and Qualified Plans already provide tax-deferral of earnings. There is no additional benefit from the annuity's tax deferral feature. An annuity should be used to fund an IRA when its features, other than tax-deferral, are beneficial.

3The first year declared interest rate is an annual effective yield that is guaranteed for the first contract year. It is separate from the contract's Guaranteed Minimum Interest Rate that is effective for all contract years.

4Dependent upon individual circumstances and the plan selected. The single premium amount required to establish the guaranteed payout you want is based on the option selected at the time of application.

5Income received from a qualified retirement plan is fully taxable.

Life insurance underwritten and annuities offered by AAA Life Insurance Company, Livonia, Michigan. AAA Life Insurance Company is licensed in all states except NY. CA Certificate of Authority #07861. Products and their features may not be available in all states.

EliteGuarantee Contract Form Series: ICC11-4101, DA-4101; Platinum Bonus Contract Form Series: ICC11-4111, DA-4111, SPIA Contract Form Series: 40611.

AAA Life Insurance Company and its agents do not provide legal or tax advice. Therefore, you may wish to seek independent legal, tax, or financial advice prior to the purchase of this contract.

This information is not a contract. All descriptions are intended solely to inform you about the many features of annuities. The contract and its endorsements determine exact product features and benefits.

This is a summary of provisions and does not contain all of the benefits and exclusions. For complete terms of the insurance coverage, please contact your insurance professional or refer to the contract. Products and their features may not be available in all states.

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