Annuities are one of the most attractive – and rather simplest – retirement options that benefit from limited exposure to the public opinion. However, this does not undermine their invaluable worth.
In essence, annuity investments pay you a specific fixed monthly sum of money for as long as you live, greatly reducing the risk of outliving your money and helping to cover basic retirement expenditure. In exchange for a lump-sum premium, we commit to paying you a lifetime income in monthly or yearly instalments for as long as the annuity contract is available. The biggest advantage of buying annuities is the security against market and interest rate risks. In special cases, you could also benefit from tax savings, too.
There are a few specific situations which govern the total fixed income you receive, such as your age, the period of time over which your rightful payments spread, and the amount of money you actually invested into the annuity.
Annuity investments benefit from a lot of flexibility. As such, you can opt for one of the three main types of annuities as follows:
Life Annuities – as the name suggests, you will be given income payments for as long as you give, no strings attached.
Joint Annuities – if you wish to ensure your partner’s future financial stability, you can provide him or her regular income payments for as long as he or she lives, in the unfortunate event of your death
Term Certain Annuity – this type of annuity investment provides you with regular income over a specific period of time. If you die before the contract obligations are fulfilled, a designated person can benefit from what remains
Here at Life Insurance Pro we are committed to putting you on the right track with regard to what kind of annuity investment best suits your situation. Get in touch with us today to apply for and receive a free, no-obligation quote.