subject: Look Out For A Good Annuity That Adds Tremendous Value To Your Financial Plan [print this page] In the scope of financial reality, all types of investments are equal. But just as you can have good or bad investments, you can have bad or good annuities too. Before taking annuities as your income option you must be well aware of how well these annuities fit in your financial plan and meet your financial goals. Measure the benefits of a good annuity by independently accessing it with certain criteria mentioned here in my article. Annuities not possessing most of these features might hardly be good for you.
Safety is a critical attribute of annuities.
According to the opinion of most of the financial experts, annuities are safer income options as compared to other types of investments. Since, variable annuities possess a factor of uncertainty as far as safety is concerned that is why you should look for a reliable annuity provider who can provide guarantees where capital and interest rates are concerned for the annuity investor.
Good rates of interest
Most of the annuities usually provide fairly moderate returns. However, most of the annuities in fact bear really competitive rates of return. Good annuities will always benefit the annuity investor with interest rates or accumulation rates that exceed the rates of returns from other income options.
Good payout rates
A good annuity must work well in the pay out phase or annuitization phase also as it should in the accumulation phase. At the time when an annuity matures, the insurer fixes a rate per cash-value dollar to decide what the pay outs would be. A good annuity support higher payout rates, which ensures that the annuity investor gets higher annuity income for the cash value at the time when an annuity matures.
Flexible premium annuities are the best
A good annuity will always provide the annuity investor with flexible premium opportunities to increase or make uneven contributions throughout the accumulation phase or even miss premiums. Restrictive annuities tend to benefit the annuity provider more than the annuity investor especially when clauses like paid-up annuity come into action when the investor forgets to pay the premiums.
It is important to assess various options based on specific criteria while purchasing an annuity as the annuity must go well with your requirements and add considerable value to your financial plan.
by: Tony
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