CAB FINANCIAL SOLUTIONS™
Understand Your Annuity Options Before You Decide
Compare annuity types, tax treatment, income options, provider strength, liquidity and contract features with guidance based on your individual retirement goals.
Nationwide virtual consultations · Multiple carriers and annuity types
INFORMED RETIREMENT DECISIONS
There Is No Single “Best” Annuity for Everyone
At CAB Financial, we offer multiple types of annuities because, like every financial product, each has an appropriate time and place—as well as advantages and disadvantages.
We evaluate your age, income needs, retirement timeline, liquidity, risk tolerance, tax considerations and financial objectives before comparing appropriate options. We then explain the facts and tradeoffs so you can make an informed decision.
ANNUITY LEARNING CENTER
Common Questions, Clear Answers
Select a question below to review the most important considerations.
01 How are deferred annuities taxed?
Deferred annuities grow tax-deferred, meaning taxes are generally due only when money is distributed.
Qualified Annuity
An annuity funded with pre-tax retirement money generally has distributions taxed as ordinary income.
Nonqualified Annuity
An annuity funded with after-tax money generally returns your cost basis tax-free, while earnings are taxed as ordinary income.
- Nonqualified partial withdrawals are generally treated as taxable earnings first until gains are exhausted.
- Annuitized payments may include both taxable earnings and a tax-free return of basis.
- Taxable distributions before age 59½ may be subject to an additional 10% federal tax unless an exception applies.
- Surrender charges and state income taxes may also apply.
Before taking a distribution, confirm whether the contract is qualified or nonqualified, your cost basis, available withdrawal provisions and any surrender charges. Consult a qualified tax professional for individualized tax guidance.
02 How do I choose between a fixed annuity and a MYGA?
A Multi-Year Guaranteed Annuity, or MYGA, is a type of fixed annuity. The right choice depends on how long you can leave the money in place, when you need income and which contract features matter most.
Rate Certainty for a Set Term
A MYGA typically guarantees a stated interest rate for a specified term and is commonly funded with a single premium.
Often considered when:- You want a known rate for a defined period.
- You can accept a surrender schedule.
- Your primary objective is predictable accumulation.
Different Renewal or Income Features
Other fixed annuities may use annually declared rates or offer different withdrawal, annuitization and income-benefit provisions.
Often considered when:- You want features beyond a fixed multi-year term.
- You are evaluating future income options.
- You need different liquidity or renewal provisions.
CAB Financial compares:
- Guarantee period and renewal terms
- Surrender period, free-withdrawal provisions and MVAs
- Income options and rider costs
- Carrier ratings and claims-paying strength
- Tax status, beneficiaries and retirement timeline
03 What are the benefits of a fixed indexed annuity?
A fixed indexed annuity, or FIA, offers interest-crediting potential linked to a market index without directly investing the contract value in that index.
Negative Index Protection
Contract value does not decline solely because the linked index has a negative return.
Interest-Crediting Potential
Interest may be credited when the index rises, subject to contract terms.
Tax-Deferred Growth
Interest generally grows without current taxation until it is distributed.
Income Options
Certain contracts offer optional benefits designed to provide lifetime income.
FIA interest may be limited by participation rates, caps, spreads, volatility controls or other crediting provisions. Additional considerations may include surrender charges, restricted liquidity and optional rider fees.
An FIA does not directly invest in a stock-market index, and its credited interest will not equal the full return of the index.
04 What should I consider when selecting an annuity provider?
Consider the insurer’s financial strength, contract terms, available benefits, costs, service history and suitability for your retirement objectives.
Financial Strength
Review current ratings from independent rating agencies. Ratings indicate an insurer’s assessed ability to meet its obligations, but they are not guarantees and can change.
Contract Terms
Compare guaranteed rates, surrender periods, withdrawal provisions, caps, participation rates, spreads and renewal terms.
Income and Beneficiary Options
Review lifetime-income features, joint-income choices, annuitization terms, death benefits and optional riders.
Costs and Compensation
Understand rider charges, contract expenses, surrender charges and how the licensed insurance professional is compensated.
Service and Complaint History
Consider customer support, administrative service and available state insurance department complaint information.
State Protections
State guaranty association coverage may apply if an insurer fails, subject to eligibility rules and coverage limits. It is not FDIC insurance.
CAB Financial compares products from multiple providers based on your age, goals, income needs, retirement timeline, liquidity and individual circumstances. We commonly consider carriers rated A or better, while recognizing that ratings do not eliminate every product or insurer-related risk.
05 Are there annuity options that offer lifetime income?
Yes. CAB Financial can compare several types of annuity contracts that offer guarantees designed to provide income for life.
Immediate Income Annuities
A single premium is converted into scheduled income payments that generally begin within a short period after issue.
Deferred Income Annuities
Income begins at a selected future date, allowing the contract to prepare for later retirement-income needs.
Income Riders
Certain fixed and fixed indexed annuities offer optional lifetime-withdrawal benefits, often for an additional cost.
Important tradeoffs include:
- Reduced liquidity and possible surrender charges
- Additional rider costs and withdrawal restrictions
- Inflation’s effect on payments that do not increase
- Single-life versus joint-life payout elections
- Effects of excess withdrawals on future benefits
- The issuing insurer’s claims-paying ability
“Lifetime income” does not necessarily mean unrestricted access to the full contract value. Review the income base, payout percentage, rider cost, withdrawal rules and death-benefit terms.
THE CAB PROCESS
We Do the Comparison Work for You
Understand
We review your age, finances, retirement timeline, income needs, liquidity and objectives.
Compare
We compare suitable products, carriers, rates, features, limitations and costs.
Explain
We clearly explain the benefits, disadvantages and tradeoffs of each appropriate option.
You Decide
You choose whether to proceed after reviewing the facts and your available alternatives.
COMPLIMENTARY RETIREMENT REVIEW
Find Out Which Annuity Options Fit Your Goals
Speak with CAB Financial about current rates, retirement-income options, rollovers and strategies designed around your individual situation.
Important Information
Annuities are long-term insurance contracts. Product availability, rates, features, fees, riders, surrender charges and guarantees vary by carrier, contract, state, age, premium amount and eligibility. Current rates and product terms are subject to change. A complete carrier illustration and suitability review are required before purchase.
Annuities are not bank deposits and are not FDIC or SIPC insured. Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company. State guaranty association coverage may be available, subject to state limits and eligibility requirements.
Fixed indexed annuities do not invest directly in a market index. Credited interest may be limited by caps, participation rates, spreads, volatility controls or other contract provisions. Withdrawals may reduce contract values and benefits and may be subject to surrender charges, ordinary income tax and federal tax penalties when applicable.
This material is for general educational purposes and does not constitute individualized investment, tax or legal advice. Consult qualified financial, tax and legal professionals regarding your specific circumstances.
CAB Financial Solutions™ © 2026 Central Alabama Benefits LLC. All rights reserved.
CAB FINANCIAL SOLUTIONS™
Understand Your Annuity Options Before You Decide
Compare annuity types, tax treatment, income options, provider strength, liquidity and contract features with guidance based on your individual retirement goals.
Nationwide virtual consultations · Multiple carriers and annuity types
INFORMED RETIREMENT DECISIONS
There Is No Single “Best” Annuity for Everyone
At CAB Financial, we offer multiple types of annuities because, like every financial product, each has an appropriate time and place—as well as advantages and disadvantages.
We evaluate your age, income needs, retirement timeline, liquidity, risk tolerance, tax considerations and financial objectives before comparing appropriate options. We then explain the facts and tradeoffs so you can make an informed decision.
ANNUITY LEARNING CENTER
Common Questions, Clear Answers
Select a question below to review the most important considerations.
01 How are deferred annuities taxed?
Deferred annuities grow tax-deferred, meaning taxes are generally due only when money is distributed.
Qualified Annuity
An annuity funded with pre-tax retirement money generally has distributions taxed as ordinary income.
Nonqualified Annuity
An annuity funded with after-tax money generally returns your cost basis tax-free, while earnings are taxed as ordinary income.
- Nonqualified partial withdrawals are generally treated as taxable earnings first until gains are exhausted.
- Annuitized payments may include both taxable earnings and a tax-free return of basis.
- Taxable distributions before age 59½ may be subject to an additional 10% federal tax unless an exception applies.
- Surrender charges and state income taxes may also apply.
Before taking a distribution, confirm whether the contract is qualified or nonqualified, your cost basis, available withdrawal provisions and any surrender charges. Consult a qualified tax professional for individualized tax guidance.
02 How do I choose between a fixed annuity and a MYGA?
A Multi-Year Guaranteed Annuity, or MYGA, is a type of fixed annuity. The right choice depends on how long you can leave the money in place, when you need income and which contract features matter most.
Rate Certainty for a Set Term
A MYGA typically guarantees a stated interest rate for a specified term and is commonly funded with a single premium.
Often considered when:- You want a known rate for a defined period.
- You can accept a surrender schedule.
- Your primary objective is predictable accumulation.
Different Renewal or Income Features
Other fixed annuities may use annually declared rates or offer different withdrawal, annuitization and income-benefit provisions.
Often considered when:- You want features beyond a fixed multi-year term.
- You are evaluating future income options.
- You need different liquidity or renewal provisions.
CAB Financial compares:
- Guarantee period and renewal terms
- Surrender period, free-withdrawal provisions and MVAs
- Income options and rider costs
- Carrier ratings and claims-paying strength
- Tax status, beneficiaries and retirement timeline
03 What are the benefits of a fixed indexed annuity?
A fixed indexed annuity, or FIA, offers interest-crediting potential linked to a market index without directly investing the contract value in that index.
Negative Index Protection
Contract value does not decline solely because the linked index has a negative return.
Interest-Crediting Potential
Interest may be credited when the index rises, subject to contract terms.
Tax-Deferred Growth
Interest generally grows without current taxation until it is distributed.
Income Options
Certain contracts offer optional benefits designed to provide lifetime income.
FIA interest may be limited by participation rates, caps, spreads, volatility controls or other crediting provisions. Additional considerations may include surrender charges, restricted liquidity and optional rider fees.
An FIA does not directly invest in a stock-market index, and its credited interest will not equal the full return of the index.
04 What should I consider when selecting an annuity provider?
Consider the insurer’s financial strength, contract terms, available benefits, costs, service history and suitability for your retirement objectives.
Financial Strength
Review current ratings from independent rating agencies. Ratings indicate an insurer’s assessed ability to meet its obligations, but they are not guarantees and can change.
Contract Terms
Compare guaranteed rates, surrender periods, withdrawal provisions, caps, participation rates, spreads and renewal terms.
Income and Beneficiary Options
Review lifetime-income features, joint-income choices, annuitization terms, death benefits and optional riders.
Costs and Compensation
Understand rider charges, contract expenses, surrender charges and how the licensed insurance professional is compensated.
Service and Complaint History
Consider customer support, administrative service and available state insurance department complaint information.
State Protections
State guaranty association coverage may apply if an insurer fails, subject to eligibility rules and coverage limits. It is not FDIC insurance.
CAB Financial compares products from multiple providers based on your age, goals, income needs, retirement timeline, liquidity and individual circumstances. We commonly consider carriers rated A or better, while recognizing that ratings do not eliminate every product or insurer-related risk.
05 Are there annuity options that offer lifetime income?
Yes. CAB Financial can compare several types of annuity contracts that offer guarantees designed to provide income for life.
Immediate Income Annuities
A single premium is converted into scheduled income payments that generally begin within a short period after issue.
Deferred Income Annuities
Income begins at a selected future date, allowing the contract to prepare for later retirement-income needs.
Income Riders
Certain fixed and fixed indexed annuities offer optional lifetime-withdrawal benefits, often for an additional cost.
Important tradeoffs include:
- Reduced liquidity and possible surrender charges
- Additional rider costs and withdrawal restrictions
- Inflation’s effect on payments that do not increase
- Single-life versus joint-life payout elections
- Effects of excess withdrawals on future benefits
- The issuing insurer’s claims-paying ability
“Lifetime income” does not necessarily mean unrestricted access to the full contract value. Review the income base, payout percentage, rider cost, withdrawal rules and death-benefit terms.
THE CAB PROCESS
We Do the Comparison Work for You
Understand
We review your age, finances, retirement timeline, income needs, liquidity and objectives.
Compare
We compare suitable products, carriers, rates, features, limitations and costs.
Explain
We clearly explain the benefits, disadvantages and tradeoffs of each appropriate option.
You Decide
You choose whether to proceed after reviewing the facts and your available alternatives.
COMPLIMENTARY RETIREMENT REVIEW
Find Out Which Annuity Options Fit Your Goals
Speak with CAB Financial about current rates, retirement-income options, rollovers and strategies designed around your individual situation.
Important Information
Annuities are long-term insurance contracts. Product availability, rates, features, fees, riders, surrender charges and guarantees vary by carrier, contract, state, age, premium amount and eligibility. Rates shown in the ticker are informational snapshots and are not binding offers. A complete carrier illustration and suitability review are required before purchase.
Annuities are not bank deposits and are not FDIC or SIPC insured. Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company. State guaranty association coverage may be available, subject to state limits and eligibility requirements.
Fixed indexed annuities do not invest directly in a market index. Credited interest may be limited by caps, participation rates, spreads, volatility controls or other contract provisions. Withdrawals may reduce contract values and benefits and may be subject to surrender charges, ordinary income tax and federal tax penalties when applicable.
This material is for general educational purposes and does not constitute individualized investment, tax or legal advice. Consult qualified financial, tax and legal professionals regarding your specific circumstances.
CAB Financial Solutions™ © 2026 Central Alabama Benefits LLC. All rights reserved.