TAX DEFERRED ANNUITIES

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="039285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>LIFE, DISABILITY, MEDICAL, MEDIGAP, DENTAL, LTCI and ANNUITIES </B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="LIFE, DISABILITY, MEDICAL, MEDIGAP, DENT"><U><B>home</B></U></A></div> <div>                                                   </div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="038d2c00dkelyh.png"> <div> W. Forrest Veal, CLU</div> <div> P. O. Box 700222</div> <div> Dallas, TX 75370</div> <div> 972 250 6516</div> <div> 1 888 845 8325</div> <div> Fax 1 775 542 0808</div> <div> Email - vealbs@juno.com</div> <bR> <bR> <bR> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>TAX DEFERRED ANNUITIES</I></div> <div> <B>What is a tax-deferred Annuity?</B></div> <bR> <div> A tax-deferred annuity is a contract between you and an insurance company for a guaranteed interest-bearing policy with guaranteed annuity income options. The insurance company credits interest, and you do not pay taxes on the earnings until you make a withdrawal or begin receiving an annuity income. Tax-deferred means postponing your taxes on interest earnings until a future point in time. </div> <bR> <div> <B>The concept of annuities</B></div> <bR> <div> Many people today are choosing tax-deferred annuities as the foundation of their overall financial plan. Why? The traditional savings dollar is taxed every year. By postponing that tax with a tax-deferred annuity, your money compounds faster because you can earn interest on dollars that would have otherwise been paid to the IRS. Later, if you decide to take these extra dollars as a monthly income, your taxes can be less because they will be spread out over a period of years.</div> <bR> <div> <B>Safety</B></div> <bR> <div> Your tax-deferred annuity is safe. A qualified legal reserve life insurance company is required to meet its contractual obligations to you. These reserves must, at all times, be equal to the withdrawal value of your annuity policy. In addition to reserves, state law also requires levels of capital and surplus to further increase policyholder protection. Legal reserve refers to the strict financial requirements that must be met by an insurance company to protect the money paid in by all policyholders. These reserves must, at all times, equal the withdrawal value (principal plus interest less early withdrawal fees, if any) of every annuity policy. State insurance laws also require that a life insurance company must maintain certain minimum levels of capital and surplus, which provide additional policyholder protection.</div> <bR> <div> <B>What will the future tax be?</B></div> <bR> <div> The future tax will be ordinary income tax on the interest earnings. The tax advantage is that you pay it in the future, not each year as it is earned. To help minimize that future tax, you can have your earnings paid over several tax years.</div> <bR> <div> <B>What happens to your annuity if you die?</B></div> <bR> <div> If a premature death should occur, the accumulating funds within your annuity will be transferred (without a fee) to your named beneficiary, avoiding the expense, delay, frustration and publicity of the probate process. A spouse beneficiary may elect to continue the annuity and postpone paying tax, cash in the annuity and pay the total taxes due or elect a periodic pay out and pay tax as funds are received. A person beneficiary other than a spouse may delay pay out up to five years, elect a periodic pay out not to exceed life expectancy or cash in the annuity and pay the total tax due. Like most assets, the annuity is part of your taxable estate. Fortunately, new legislation has greatly reduced this tax. Your heirs can choose to receive a lump sum payment, or a guaranteed monthly income.</div> <bR> <div> <B>What are some of the desirable features to look for in a good annuity?</B></div> <bR> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Backed by a financially sound insurance company.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">A reasonable interest rate guarantee period.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">The surrender charge period equal to the rate guarantee period and reasonable in amount.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Free partial withdrawal privilege.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">Death benefit equal to full accumulated value.</div> <div> <IMG BORDER="0" SRC="Symb075c00b700f000000000.png" HEIGHT="16" WIDTH="24" ALIGN="bottom" HSPACE="0" VSPACE="0">No annuitization requirement.</div> <bR> <div> <B>The Bottom Line</B></div> <bR> <div> If you want to decrease your taxes and get a larger return on your conservative savings dollars, put them in a safe, productive, tax-deferred annuity. To receive your personal quote for one or more annuities currently having  a competitive interest rate and guaranteed period, click <A HREF="id49.htm" TARGET="_top" TITLE="EMAIL ANNUITY QUOTE REQUEST"><U><B>"here"</B></U></A><B>.</B></div> <bR> <div> <B>Return to the Table of Subjects by clicking on "home" in the above blue border.</B></div> </td> </tr></table></body>