subject: Investing in annuity is the most feasible investment [print this page] Investing in annuity is the most feasible investment
Investing in annuity is the most feasible investment that you can make as that is valid for the security after retirement. It is one of the most profitable plans of investment as that assures a financially secured future after the retirement. Retiring from job does not mean retiring from life itself. Retirement is the period to relax and reflect back on the past experience. It would definitely be nice if the life after retirement is stable financially too. This can only be possible if you invest in an annuity plan. There are many varieties in the annuity plans; some of the fundamental plans are the Life annuity, variable annuity, fixed annuity and the equity indexed annuity.
The life annuity plan is actually a contract between you and the insurance company. The best thing about this annuity plan is that it guarantees you a stable monthly income for the rest of your life. All you need to do is invest a lump sum amount. Once that amount is invested in a life annuity, you will be able to enjoy a stable financial condition in regular monthly instalments from this life annuity plan.
There are three options that you can choose from amongst the life annuities plan:
The option of single life annuity plan gives you a monthly income regularly for as long as you live. This definitely is a great assurance for the remaining years of your retirement. This life annuity is of benefit for you till the date you are alive. The premium that you need to pay for this life annuity is higher than the rest.
If you are looking to build a financially secured plan for your spouse, after your death, then a life policy jointly is the perfect choice for you. In case of such a life annuity plan, your spouse is entitled to receive a monthly payment after your death. It definitely works in the mode of benefit for the survivor. The monthly payment received in this policy is less than that of the single life option.
There is another option also known as the period certain option. This life annuity gives you an opportunity to ensure payments for your beneficiaries after your death. Your beneficiaries will receive payments for a definite number of months or years as specified by you in the papers earlier.
Your age and gender would be taken in to consideration while decisions on the amount of monthly payment from this life annuity are made.
On the other hand, deferred annuities are mainly for people who can make periodic payments so as to get a monthly or a yearly delivery of payments. The deferred annuity can also be bought with a single payment. The deferred annuities do not begin payments until a given date. It has two divisions: the income phase and the saving phase. You can get the tax deferred income during the bond period too. Depending on the way you invest the amount in a deferred annuity, the income varies from being uneven or stable.
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