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Lifetime Annuity & Fixed Annuity – Financial Security after Retirement
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Posted On :
Dec-08-2010
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Article Word Count :
524
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Annuity investment is a secure and safe drive for the remaining years of life after retirement. Lifetime annuity and fixed annuity are two profitable and flexible investment options. Read on the article to know about the benefits of these investment options.
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Annuity is one of the best and most feasible investment vehicles for retirement security. It is a profitable investment plan to ensure financial security for the rest of life after retirement. Retirement from profession does not mean the end of life. One's life spans for several years even after retirement. After decades of toils and moils, retirement is the period to rest and relax in a financially stable condition. It is possible because of annuity investment plans. Lifetime annuity, fixed annuity, variable annuity and equity indexed annuity are fundamental annuity types.
A lifetime annuity plan refers to a contract between an insurance company and you. It guarantees to provide you with a monthly income for the rest of your life. For a lump sum investment, you can enjoy financial security in terms of monthly payouts from the annuity plan. You will continue to receive the income every month till your death from the date of purchasing the annuity plan. There are three options to benefit from lifetime annuities.
Three Options to Benefit from Lifetime Annuities
The single life option of a lifetime annuity will supply you with a monthly income as long as you are alive. It assures you of financial stability for the remaining years of your life after retirement. With this option, you can be sure of the highest amount as monthly premiums. This option favors you with financial benefits only when you are alive.
If you want to ensure financial security for your spouse after your death, a joint life policy is the best choice. Your spouse will be receiving the payment even after your death. It works for the benefit of the survivor. With this option of lifetime annuity investment, the monthly payment is less than with the single life option.
A period certain option is the way to ensure a legacy for for your beneficiaries after your premature death. It will enable the beneficiaries to receive monthly payments for a definite number of years, specified by you in the document. However, your gender and age matter to the amount of monthly income from the options of lifetime annuity investment.
A Brief of Fixed Annuities
Fixed annuities are good for those who want to be sure of a secure and guaranteed income in future. A fixed annuity plan is a good, secure and profitable investment. As a benefit of this annuity investment, you will be entitled to a fixed monthly income for a definite period of time. The payments are deferred to your chosen date. Fixed annuities are tax-deferred investments. In this fixed annuity investment, a lump sum is later paid out in a stream of smaller premiums.
Generally, the income from fixed annuities consists of a chunk of the invested principal and a part of the interest on the principal. Fixed annuity is of main two types – market-value adjusted and equity indexed. A minimum interest rate is paid with an equity-indexed annuity. Market-value-adjusted annuities come with various interest rates to choose from. This advantage is not available with lifetime annuity investment plans.
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Article Source :
http://www.articleseen.com/Article_Lifetime Annuity & Fixed Annuity – Financial Security after Retirement_44489.aspx
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Author Resource :
Simon Cronje is a business consultant who has good information on lifetime annuity and Fixed annuity. For more information visit http://www.totalreturnannuities.com/.
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Keywords :
lifetime annuity, Fixed annuity,
Category :
Finance
:
Finance
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