Speak with an Annuity Advisor
An annuity refers to an insurance contract or agreement between an individual and an insurance company where the individual agrees to pay a regular or one-time premium payment. The insurance company, in turn, offers the security of consistent income to the individual in the future. Annuities act as a fallback plan, especially during retirement or in the event of a partial or complete body incapacitation.
Types of annuities
- A fixed annuity is assured to the individual after a specific period. It attracts both the principal amount invested and accruing interests.
- A variable annuity is influenced by the insurance company and its trade activities in the stock market.
- A deferred annuity sets a specific date where an individual gets to redeem their agreed income and accumulated premiums.
- A equity-indexed annuity. is a mix of both fixed and variable annuities, where the investor gains interest. At the same time, it is valued at the stock market.
- A market value adjusted annuity allows the investor to choose the time limit and the interest rate that will be charged. It also allows the individual to withdrawal his or her savings before a set period.
- With a fixed period annuity, the contract made sets a fixed timeline and is considerate only of the amount invested and the set period, not the individual’s age.
- An immediate annuity. features an instant income to the investor once the premium payment has begun.
- A lifetime annuity. offers a stable and regular income to the investor for their lifetime after a set date.
What are the advantages of annuities?
Investors are attracted to annuities because of two simple reasons: tax on annuities is deferred to the time of withdrawal and annuities act as a form of security and an assurance of a constant income in the future.
The benefits of annuities include:
- Annuities attract interest on investments.
- They provide secure income in the future and safeguards against unexpected risks.
- Annuities make saving easier.
- Premiums submitted are considerate of the package that an individual chooses.
In conclusion, annuities are one of the safest methods for saving and offer a guarantee to individuals. If they honor their premiums, they will enjoy their accumulated income with interest.
If you would like to speak with a Minneapolis annuity advisor, contact Assured Retirement Group today. We look forward to hearing from you.
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