Multi-Year Guaranteed Annuity (MYGA)
One lump sum that grows over time.
Annuities you can count on
Plan for retirement with confidence.
What is an annuity?
An annuity is a long-term insurance contract that helps you grow your savings or provides guaranteed income in retirement. Whether you choose to build your funds for the future or start receiving income right away, annuities complement your other retirement accounts.
Flexible Premium Deferred Annuity (FPDA)
Contributions on your timeline that you can withdraw later.1
Single Premium Immediate Annuity (SPIA)
Receive guaranteed income, right away.
How will an annuity work?
The type of annuity plan you choose defines how it works in your real life.
Qualified annuities: These are funded with pre-tax dollars, most commonly through rollovers or transfers from retirement plans like a 401(k) or traditional IRA. Because the money hasn’t been taxed yet, all withdrawals are taxed as ordinary income when you begin taking distributions.
Non-qualified annuities: These are funded with after-tax dollars, typically from personal savings or other non-retirement accounts. Since you’ve already paid taxes on the money you contribute, only the interest earned is taxable when you withdraw it. Your original principal is returned to you tax-free.
Non-qualified annuities: These are funded with after-tax dollars, typically from personal savings or other non-retirement accounts. Since you’ve already paid taxes on the money you contribute, only the interest earned is taxable when you withdraw it. Your original principal is returned to you tax-free.
Fixed annuities: With a fixed annuity, your contributions earn a guaranteed interest rate over a specific period. This means you’ll know exactly how much your money will grow, regardless of how the market performs. It’s a stable, low-risk approach, making it ideal if you’re focused on protecting your savings while earning predictable returns.
Deferred annuities: You can fund this type of annuity with either one lump sum or multiple payments, and your money then grows tax-deferred during the accumulation phase. When you're ready, you can turn the balance into a steady income stream - either for a set number of years or for life.
Immediate annuities: With this option, you contribute a lump sum and begin receiving payments shortly after - often within 30 days. The payments are guaranteed and can be structured in several ways: for life, for a certain number of years, or for the longer of the two. Joint life annuities will pay for the longer of your lifetime and the lifetime of your spouse.
Immediate annuities: With this option, you contribute a lump sum and begin receiving payments shortly after - often within 30 days. The payments are guaranteed and can be structured in several ways: for life, for a certain number of years, or for the longer of the two. Joint life annuities will pay for the longer of your lifetime and the lifetime of your spouse.
Confidence you can count on
Amica can help you choose the right type of annuity for your unique retirement and savings needs. Let us help guide you.
| Key benefit | MYGA | FPDA | SPIA |
|---|---|---|---|
| Contribution type | Lump sum | Flexible | Lump Sum |
| Guaranteed interest | Yes1 | Yes2 | Yes1 |
| Tax-deferred growth | Yes | Yes | |
| Access to funds before income | Yes3 | Yes3 | |
| Guaranteed income | Yes | Yes | Yes |
| Income starts right away | Yes |
Annuities FAQs
Yes. If your annuity was funded with pre-tax dollars, the entire withdrawal is taxable. For annuities funded with after-tax dollars, only the interest is taxable.
You can choose how often to receive payments – monthly, quarterly, semiannually or annually – based on your needs.
Unlike 401(k)s and IRAs, which are typically offered through employers or financial institutions, annuities are issued by insurance companies. This gives them benefits like guaranteed income, protection from market loss and flexible payout options that traditional retirement accounts may not offer.
Annuities are a strong option for people nearing or in retirement who want guaranteed, steady income. They also work well for those looking to protect their savings, grow assets safely and benefit from tax-deferred growth over time.
There's more to learn about annuities
Explore more annuity topics
Pros and Cons of Annuities
What Is a Deferred Annuity?
Ready for a Retirement Lifestyle? These Steps Can Help You Prepare
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Fixed, guaranteed for term.
Fixed, guaranteed for 12 months after contribution, subject to renewal thereafter
Withdrawals may be subject to surrender charges.
*Based on internal Amica data on representative tenure (Jan. 2024 - Nov. 2025) compared to publicly available industry averages. Individual experience may vary and this statement is not a guarantee of any specific customer outcome or service experience.
**As of Dec. 31, 2025, for Amica auto and home policyholders.*
***A+ (Superior) is the second highest of 13 company ratings. Ratings range from A++ (Superior) to D (Poor). AM Best's ratings measure an insurer's financial strength.