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Using Annuities for Principal Protection and Potential Guaranteed Income

By June 17, 2026No Comments6 min read

Using Annuities for Principal Protection and Potential Guaranteed Income

By  | June 17, 2026

Eighty-Eight percent of annuity owners think that every retiree should have money invested in a product that guarantees lifetime income.1

Using Annuities to Face Retirement Challenges

For many people getting close to retirement, or already there, the goal starts to change. It’s no longer just about growing your money. It’s about protecting what you’ve saved and making sure it lasts as long as you do.

That’s not always easy today. People are living longer. Markets go up and down. And traditional pensions are harder to find.

This is where annuities can help by bringing peace of mind to your financial future, helping address two big concerns in retirement: losing money in the market and running out of income.

How Annuities Address These Concerns?

  1. Running Out of Income
    People are living longer than ever. If you’re 65 today, there’s a good chance you, or your spouse, could live into your 90s.That means your money may need to last 25–30 years or more. The risk of outliving your savings is called longevity risk.An annuity can help by providing the option to create income you can count on, no matter how long you live.Today’s modern annuities can provide this lifetime income while allowing you to remain in control of your money.  You can stop and restart payments or cash out your remaining money (ending income) at any time.1  Also, if you don’t use all your money by the time you die your beneficiary will receive the money that is left.
  1. How Annuities Help Protect Your Money
    As you get closer to retirement, protecting your principal becomes more important.Some annuities are designed to do just that.Fixed Annuities– Offer a set interest rate for a period of time

    Fixed Indexed Annuities (FIAs)

    – Track a chosen or specific market index like the S&P 500

    • No direct market investment
    • No losses when the market drops
    • Limits on how much you can gain

These options may not offer the highest returns. But they can help you grow your money without taking on big risks.

For many retirees, that trade-off is worth it. And even younger people may see value in the future potential for guaranteed income, especially when looking for alternatives.

Build Confidence in Retirement with Annuities

Retirement today comes with more unknowns than it used to. That’s why having steady income and principal protection matters more than ever.

The peace of mind that guaranteed income can provide is hard to overstate—and many retirees agree.

If you don’t yet have guaranteed income as part of your retirement—or if you’re wondering whether an annuity could be a good fit—connect with your National Life agent. They can help you understand your options and help build a strategy that works for you.

Frequently Asked Questions

What is an annuity?

An annuity is a contract with an insurance company that can provide income, growth, or protection for your money.

How do annuities provide guaranteed income?

Some annuities have the potential to provide an income stream that can last for a set time—or for the rest of your life.3

Are annuities safe from market losses?

Fixed and fixed indexed annuities help protect against market drops, but they may limit how much you can earn.

Is my money locked away?

Many annuities allow withdrawals or access to funds, depending on the terms, and there may be fees or withdrawal charges.

Who should consider an annuity?

Anyone who wants the potential for steady income and less market risk in retirement may find annuities helpful. People closer to retirement often feel these needs the most, but younger people may also use annuities as part of a retirement strategy, as an alternative to other products.

You Can Do This

If you haven’t recently reviewed your life insurance policy, National Life Insurance Awareness Day is a good time to do so. Consult a financial professional to help keep your policy on track.

If you are interested in talking about life insurance, please reach out to National Life Group to get the conversation started.

Contact A Financial Professional

Chris Newbern

Chris Newbern is a Director of Distribution Marketing, with 24 years of experience in the insurance industry. He has a primary focus on annuity products and sales concepts, helping to agents and customers understand where National Life Group products and solutions can help people retire with confidence and dignity.

  1. Blackrock | Annuity Owners Value Lifetime Income Benefits (October 2025); https://www.blackrock.com/us/financial-professionals/retirement/insights/annuity-owners-value-lifetime-income-benefits
  2. Early withdrawals of taxable amounts from an annuity are subject to ordinary income tax, and, if taken before age 59 1/2, may be subject to a 10% IRS penalty.
  3. Guaranteed lifetime income may be provided either by annuitizing an annuity, or through purchasing an annuity with an income rider.

Products issued by
National Life Insurance Company® | Life Insurance Company of the Southwest®

National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest, Addison, TX, and their affiliates. Each company is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.

The companies of National Life Group® and their representatives do not offer tax or legal advice.

This information is provided for educational purposes only and should not be used as a basis for legal or tax advice. It is not intended to be used, and cannot be used, to avoid tax penalties.

No bank or credit union guarantee | Not a deposit | Not FDIC/NCUA insured | May lose value | Not insured by any federal or state government agency

Indexed annuities do not directly participate in the market, market indexes, or any stock or equity investments. An indexed annuity’s 0% floor ensures that if index growth is negative during a crediting period, the interest credited to that strategy will not be less than 0%. This helps protect your premiums and any interest already credited from market declines. However, rider charges will still be deducted, even if no interest is credited.

Guarantees are dependent upon the claims-paying ability of the issuing company.

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