Below you will find annuity insurance products offered by a variety of life insurance firms. The type of annuity insurance you choose depends largely on your personal situation and your financial goals. There is also the element of guarantee in annuity insurance – do you want a fixed return or variable? If you are entirely new to annuity insurance and are not sure where to begin, you can use the chart below to look at basic features and then check the Information Library for a more detailed introduction. Taking an annuity is another way of making sure you receive a form of income giving yourself and your loved ones something to rely on. A good insurance firm should discuss the details of each annuity insurance product with you in detail – and answer all your questions fully.
Compare Annuity Insurance
Annuity will protect you against outliving your assets in a need-income stage of life.
What is an Annuity?
An annuity is a contract between you and an insurer that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at a later date. Annuities allow you to accumulate tax-deferred funds for retirement and then, if you desire, receive a guaranteed income payable for life or for a specified period of time. Annuity will protect you against outliving your assets in a need-income stage of life. Social security pays retirement income for as long as you live, as do defined-benefit pension plans. But the only other source of income available that continues indefinitely is an immediate annuity.
What types of Annuities are available?
In a fixed annuity, the insurer agrees to pay you no less than a specified rate of interest during the time that your account is growing. The insurer also agrees that the periodic payments will be a specified amount per dollar in your account. These payments can last for a long time, for example your lifetime. This type of annuity is great for people who are looking for tax-deferred growth and want a fixed rate of return.
Index annuities are insurance contracts that, depending on the contract, may offer a guaranteed annual interest rate and earnings potential that is linked to participation in the growth, if any, of an index or benchmark. This type of annuity may be suitable for people who are looking for tax-deferred growth and want a minimum interest rate guarantee but also like the idea of potentially being able to benefit from rising markets. Indexed annuity policies also state that the value will be no less that a specific amount, regardless of index performance.
With a variable annuity you can decide to invest your purchase payments from a variety of different investment options. The rate of return and the amount of the payments you will receive will vary depending on the performance of the investment options you have chosen.
How to find the right product for you
Taking the time to research and compare the market is paramount. Use the table above to find the right annuity insurance policy for you. When deciding on which insurer to go for always check every detail before you sign so you can be sure you are making the best decision for you. You should watch out for hidden administration fees where you can be charged for aspects like changing your information, cancellations and late payment fees. Some companies offer a no obligation period which gives you the chance to read through the policy and change your mind.
As with all insurance products ensure that you check the terms and conditions in detail before you sign up and if you are in any doubt then seek independent financial advice.
28 July 2011
Which Way to Pay
In the economic climate of late, many people at or reaching the age of retirement are finding that they have a lot less money in their pension pots than they thought. This can be an extremely difficult and stressful time in your life, as you are reaching the end of a long career only to discover that you don’t have enough money to enjoy your retirement years as you had once expected especially if you don’t have annuity insurance.
25 March 2011
Which Way To Pay
The US insurance market is huge – finding the right product can be a daunting task. On Which Way To Pay, you can compare and read reviews for eight different types of insurance