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Immediate Annuities helps you to manage your income in a better fashion
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Posted On :
Dec-27-2011
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Article Word Count :
441
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Most of the immediate annuities provide a level playing field for the rest of your lifetime. Many life insurance firms offer a kind of fixed level of cost living rider. This will allow you to elect at the time you purchase your annuity. It sets up an annual percent of increase to the amount of your income.
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There is a fairly good chance that you will live for many years, even after your retirement. As per the general statistics, the average 65 year old will live for another 18 years. But, a larger percentage of retired persons will live much longer.
Americans are living longer and there is a fairly good chance that they may outlive their money. This has brought fears among the existing living persons. Persons who have invested their hard earned retired funds in stocks and options have seen their investments savaged by a bear market. Those, who fear this financial sector, may have found some sanctuary in money market funds.
Even though, the financial sector is still witnessing a trend to go close to a solution. This is known popularly as immediate annuities. This financial product offers a way to ensure your safety for money and also to ensure that you receive a steady income almost every month. These provide a simple way of creating your own way of earning a pension. This has come from the savings from you have made.
Buying an immediate annuity is to give the insurance company your money in exchange of a guarantee. This agreement will ensure a monthly income to your family for the rest of your life. The immediate annuity is basically designed to provide return over a scheduled period. This payment is dependent on several other factors, including your life expectancy and the age of your spouse, if she is covered by that specific policy.
There are some specific things to be considered before buying an immediate annuity
Some of the biggest supporters of this financial scheme are that you should only use them as a portion of your retired savings. Many financial planners are advising their clients to go for immediate annuities and invest a part of your investments. It is always advisable, not to put all your eggs in one basket and distribute in a uniform fashion. If you wish to buy a car or in any other thing, then an immediate annuity will hardly come to your rescue. There should be a proper mentioning of your heirs, when you go for buying an immediate annuity, neither your heirs will get nothing and prove to be a Don Quixote in the making. Married people can buy a policy in joint name, since it could prove to be very beneficial in the long run in the case of demise of a policy holder. Try to choose a shorter term; it will help you to make some money.
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Article Source :
http://www.articleseen.com/Article_Immediate Annuities helps you to manage your income in a better fashion_125164.aspx
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Author Resource :
Robert Cook is a business consultant who has good information on immediate annuity. For more information on immediate annuities he recommend you to visit www.immediateannuities.com/.
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Keywords :
immediate annuities, immediate annuity,
Category :
Finance
:
Investing
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