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Annuities Explained
With an annuity, your benefit is in living longer and receiving more payments. Because the annuity market offers an expansive array of products, chances are good you can find a solution that meets your needs. From single premium immediate annuities to multi-year guaranteed annuities, you have choices when it comes to wealth
When considering the purchase of an annuity, it is important to understand the different types of annuities, how annuities work, the contractual features of the policy, and the benefits, as well as risks, in order to choose the kind of annuity to best fit your retirement needs. Please note: annuities are complex and cannot be fully discussed here.
An annuity contract is either an immediate annuity or a deferred annuity depending on when the annuity payments begin. Immediate annuities generally are purchased by people of retirement age. These annuity contracts provide a periodic payment beginning soon after purchase. For example, if the annuity payment period is monthly, the
A variable annuity is designed for people willing to take more risk with their money in exchange for greater growth potential. Annuities can be a valuable addition to retirement planning for people at nearly every stage of life.
With an annuity, the insurance company promises to pay you income on a regular basis for a period of time you choose—including the rest of your life. Some annuities begin paying income to you soon after you buy it (an immediate annuity). Others begin at some later date you choose (a deferred annuity).
A whole life annuity-due could be used to describe annual payments from an insurance company to an individual under a lifetime annuity contract. It can also be used to describe the annual premiums paid by an individual to the insurance company which is used to fund the individual’s life insurance. 5-9
Annuities are insurance contracts that allow clients to potentially grow assets on a tax- deferred basis – providing a death benefit, a guaranteed income stream that can last a lifetime, and contract customization through additional features and optional benefits
Definition: An annuity is intervals of time. Examples: Home Mortgage payments, car loan payments, pension payments. For an annuity - certain, the payments are made for a fixed (finite) period of time, called the term of the annuity. An example is …
Many types of annuity contracts exist, each with a variety of available options. The information in this brochure, and the guidance of your financial advisor, can help you determine whether an annuity is appropriate and, if it is, which type of annuity best meets your specific requirements.
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ANNUITIES - ACLI
Annuities are financial contracts that pay a steady stream of income for either a fixed period of time or for the lifetime of the annuity owner (the annuitant). Most pension and retirement plan assets held by life insurers are annuity contracts.