Lifetime and Deferred Annuity Can Solve Finance Problems Post Retirement

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<h1>Lifetime and Deferred Annuity Can Solve Finance Problems Post Retirement</h1><strong> Author: <a href='http://www.articleseen.com/profile_Robert Maddy Cooks.aspx'>Robert Maddy Cooks</a></strong><br /><p>Many people have to face serious financial problems after retirement due to mainly two reasons; first the pension which the people receive is very less and second lack of proper planning of funds. The pension received by the people after retirement is not sufficient to meet their requirements and therefore, there is a need for some additional income along with the pension. The benefits of extra income can be availed only if you have made some investment. Annuity is a very popular investment instrument for the retired people. There are many annuity plans like Lifetime Annuity, Deferred Annuity and many others. However, it is better to invest in Lifetime Annuity rather than investing in bonds, mutual funds, retirement accounts, etc. Lifetime Annuity provides guaranteed income for your entire lifetime. It is a kind of insurance policy which will provide coverage until you die. In Lifetime Annuity there is no fixed period for which it can be valid. Therefore, it is really beneficial for the retired people. Moreover, with the increase in life expectancy of the people due to improvements and advancements in the health sector, the Lifetime Annuity is the best plan for many aging retired people. Thus, it helps in providing a relaxed life, free from financial tensions after retirement. Deferred Annuity is also another type of annuity in which there are two phases; in the first phase the annuitant has to make payments towards the annuity. It can be either in lump sum or in regular monthly payments. In the second phase the annuitant starts receiving payments depending on the investment made and the interest earned. A Deferred Annuity plan provides tax benefit as the earnings under this plan are taxed at the time when it is withdrawn. Moreover, Deferred Annuity plan also covers death benefits as well. A Deferred Annuity is of two types: fixed deferred annuity and variable deferred annuity. This annuity plan provides several choices to suit different needs of different people and is definitely a smart investment in relation to benefits, income payments and other additional features. Therefore, it is really important to invest in a plan that suits your requirements. However, before investing in Lifetime Annuity or Deferred Annuity you must check the authenticity and credibility of the insurance company issuing annuity. It is always advisable to buy such plans from reputed and reliable insurance providers which have a strong market presence and have done good business.</p><strong>About the Author:</strong><br />Robert Cook is a business consultant who has good information on <a rel="nofollow" href="http://www.immediateannuities.com/content_pages/lesson.htm">Deferred Annuity</a> and <a rel="nofollow" href="http://www.immediateannuities.com/library_articles/new-bill-would-reduce-taxes-on-lifetime-annuity-income.htm">Lifetime Annuity</a> .For more information he recommend you to visit <a rel="nofollow" href="http://www.immediateannuities.com/">www.immediateannuities.com/</a>.<p> Article Source: <a href='http://www.articleseen.com/Article_Lifetime-and-Deferred-Annuity-Can-Solve-Finance-Problems-Post-Retirement_109726.aspx'> http://www.articleseen.com/Article_Lifetime and Deferred Annuity Can Solve Finance Problems Post Retirement_109726.aspx</a></p>

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Keywords : Lifetime Annuity, Deferred Annuity,

Category : Finance : Investing