Covell Financial

An ICD is similar to a CD except your money is deposited with an insurance company instead of a bank. These deposits are also known as a MYGA or multi year guaranteed annuity. Both are considered extremely safe investments.

Advantages of an ICD compared to a CD:

• Higher Rates. ICDs typically pay higher rates than bank CDs.


• Tax Deferral. Unlike a bank CD, money held in an ICD is tax deferred. This allows interest to compound not only on prior interest credits, but also on money that would have gone to pay taxes. Also, Social Security tax can be reduced.


• Creditor Proof. Unlike a bank CD, ICDs cannot be touched by creditors.
• No Probate. ICDs are paid directly to your named beneficiary and do not go through probate.

Compare ICDs to other investments, click HERE.