MultiChoice Annuity series from Aviva

Everyone involved in saving seriously for his or her retirement will have heard the phrase annuity mentioned before. Annuities are protected retirement vehicles which offer a guaranteed minimum annual return which is also tax deferred until withdrawn for retirement. Annuities have become more advanced in the 1990's and now offer an even greater range of choices. Aviva offers a wide selection of such annuity selections in the form of its MultiChoice Annuity series.

Briefly About Aviva

Aviva is the British insurance giant which is the fifth largest insurance company in the world. They have been serving their customers for a full three hundred and thirteen years. At last count, they had nearly 930,000 American customers serviced by nearly 30,000 agents around the United States. Strength and stability is what they are all about.

Aviva's Fixed Index Annuities' Advantages

Among the types of annuities offered today, Aviva features traditional fixed annuities as well as fixed index annuities. Such fixed income annuities allow for greater potential upside appreciation by crediting interest in part based on a certain underlying stock market index's performance. This type of annuity also offers the guarantee of a certain minimum interest rate and the one hundred percent protection of principal. Among its many benefits are the following:

• The potential for superior growth over the longer term
• The safety of traditional fixed annuities
• Supplements additional streams of retirement income
• Growth is tax deferred

The Way that Indexed Annuities Work

There are two phases in an indexed annuity's life. In the first phase, known as the accumulation period, the customer makes either a series of payments into the annuity, or a single upfront lump sum amount deposit. During this time frame, the insurance company gives a certain interest credit to the customer. This is dependent on a stock market index's particular movement. Following the accumulation phase, the annuitizing phase begins. This is the point where the customer is able to begin receiving payments in certain time frame intervals according to the terms specified in his or her contract. Alternatively, the individual is capable of electing to claim the full contract value in a single lump sum payout. In Aviva's indexed annuity scheme, the customer picks the upfront premium amount, the strategy for the crediting of interest to the account, the options for income, and the options for the withdrawal of funds.

Specific Benefits of the Indexed Annuity

There are several benefits to these choices offered by the Aviva Indexed Annuity. The customer picks out the strategy for crediting interest which best meets his or her long term needs. Since the interest is credited tax deferred, the money grows faster than it would in a standard taxed investment account. Also, the person is able to access their annuity funds in a variety of ways. Among these are checkbook access, periodic electronic withdrawals, exclusive LifetimePay withdrawals, and guaranteed options for annuity payouts. The LifetimePay option allows the customer to get guaranteed income for life, all the while keeping control over the principal monies. Perhaps the best advantage to Aviva's indexed annuity lies in the fact that the annuity account is guaranteed to not ever lose any principal value, so long as the customer does not affect a withdrawal which exceeds the amount specified in the contract. Aviva also offers the advantage of Minimum Guaranteed Contract Value for the whole annuity. The person will never receive a lesser value than this amount if he or she surrenders the contract. The person can rest easy, knowing that he or she will never suffer annuity value loss over stock market declines.

Aviva offers four different annuities in their MultiChoice Series. They are listed and briefly described below, as follows:

• MultiChoice Income Elite - Ideal for individuals who wish for a longer accumulation phase for contributing a more significant amount of account funds.
• MultiChoice Income Ten, Income Seven, and Income Five - These are a wonderful selection for those individuals who have shorter time frames until they require access to an income stream.
• MultiChioce Income Xtra - This annuity offers the greatest flexibility, covering such areas as interest crediting, premium, and income options.
• MultiChoice Income Plus - created for individuals who wish to have more potential for gains in the value of the annuity account.