Annuities & retirement income in Florida

What annuities do

An annuity is an insurance contract where you provide capital (a lump sum or periodic payments) and the insurance company promises to pay you income for your life or a set period. Annuities turn savings into guaranteed cash flow—think of them as a personal pension. You can add riders (like long-term-care coverage) to customize your contract.

Types of annuities available to Florida retirees

• Fixed annuities. the insurer credits a fixed annual rate (e.g., 4–5%); predictable, safe, modest returns; popular with risk-averse retirees
• Indexed annuities (IAs). returns tied to a stock-market index (S&P 500) with a cap (e.g., 8–10%) and floor (usually 0–2%); upside participation with downside protection
• Variable annuities. you direct funds into sub-accounts (mutual funds); returns depend on market performance; higher potential returns, higher risk
• Immediate annuities. you give the insurer a lump sum and they pay you income immediately for life or a fixed period; popular for converting savings to guaranteed income

Accumulation and income phases

During the accumulation phase, your money grows tax-deferred. Withdrawals may incur surrender charges (typically 1–10% declining over years). Once you enter the income phase, you receive regular distributions and surrender charges no longer apply. Many Florida retirees use the income phase to fund retirement expenses.

Popular annuity riders for Florida retirees

• Long-term-care rider. adds LTC coverage; if you need nursing care, the rider helps pay without reducing your lifetime income
• Death benefit rider. guarantees heirs receive at least your original investment, even if market performance is poor
• Spousal continuation rider. your surviving spouse continues receiving income after you pass, rather than payments ending
• Enhanced income rider. provides higher income payments in exchange for a smaller pool that cannot be withdrawn

Florida's senior annuity protections

Florida provides strong consumer protections for senior annuity buyers (age 65+). Annuity recommendations must meet a best-interest standard: the insurer and agent must recommend products suitable for your situation. Additionally, Florida provides an unconditional free-look period for seniors age 65+, commonly 21 days, during which you can cancel the annuity for a full refund if you change your mind. This protection is stronger than many states and reflects Florida's large retiree population.

Guaranty Association protection in Florida

All annuities sold in Florida are backed by the Florida Life & Health Insurance Guaranty Association. The Guaranty Association guarantees your annuity present value up to $250,000 per contract—critical protection for Florida retirees relying on annuity income. If your insurer fails, the Guaranty Association steps in.

How to buy annuities in Florida through Maru

Maru helps Florida retirees understand annuity types (fixed, indexed, variable) and their role in a retirement plan. We explain surrender charges, riders, and how Florida's senior protections (21-day free-look for age 65+, best-interest standard) work in your favor. We discuss alternatives to annuities and only recommend an annuity if it's genuinely suitable for your situation.

Frequently asked questions

Vadim — Maru Insurance
Licensed independent insurance agent · WA & FL
Written and reviewed by a licensed Maru advisor. Maru Insurance is an independent agency (WA License WAOIC #1365574, FL License #G363233) representing multiple A-rated carriers across Washington and Florida.