Proper explanation about annuities as an income

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Proper explanation about annuities as an income

Posted On : Dec-27-2011 | seen (543) times | Article Word Count : 416 |

An annuity can be considered as an alternative source of income after the retirement. It can impact the income you receive after retirement.

What is an annuity? Well, annuities are nothing but the contract between you as an investor and the insurance company. With the help of this contract, you are guaranteed an income for the rest of your life in exchange for a fee. The income from such plan is a regular one and thus it can offer you great financial security after your retirement. Since the income that you earn from the annuity plan can have an impact on your overall income for the rest of your life, make sure that you seek professional help from the experts before signing the final contract with the insurance company.

What are the benefits of the annuities?

Well, the income that you can earn from such a plan can offer you great security and stability for your family when you are retired from your regular employment. The payments that you can receive from such plan can be decided by yourself only. There are many choices in terms of the payment like monthly or quarterly etc. You can also opt for benefits that are applicable to your spouse along with you. Some of the plans are such that even after your death, your spouse can get the benefits for life long.

The types of annuity available are many like the fixed, variable and the indexed. In case of the fixed plans, it is a low risk option that is available for you. You are guaranteed a certain return for a certain specific time frame. It is one of the simplest plans available in the market and is perfect for you in case you want a specific and fixed payment after retirement. In case of the variable plans, the premiums must be paid into a portfolio of investments. It is thus obvious that these types of annuities thus carry more risk and eventually the payout is also more depending on the kinds of investments made and the performance of the market. Since the risk value is higher in this case, the returns are thus greater. This kind of investment is preferred by the youngsters and all those who like to take risks in life.

In case of the indexed annuity plans, it will only provide a return that is linked to the financial market index. With all these different types of plans available that offers variety of returns; make sure to take proper advice from the experts before signing the contract.

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<h1>Proper explanation about annuities as an income</h1> Author: <a href='http://www.articleseen.com/profile_Robert Maddy Cooks.aspx'>Robert Maddy Cooks</a> What is an annuity? Well, annuities are nothing but the contract between you as an investor and the insurance company. With the help of this contract, you are guaranteed an income for the rest of your life in exchange for a fee. The income from such plan is a regular one and thus it can offer you great financial security after your retirement. Since the income that you earn from the annuity plan can have an impact on your overall income for the rest of your life, make sure that you seek professional help from the experts before signing the final contract with the insurance company.

What are the benefits of the annuities?

Well, the income that you can earn from such a plan can offer you great security and stability for your family when you are retired from your regular employment. The payments that you can receive from such plan can be decided by yourself only. There are many choices in terms of the payment like monthly or quarterly etc. You can also opt for benefits that are applicable to your spouse along with you. Some of the plans are such that even after your death, your spouse can get the benefits for life long.

The types of annuity available are many like the fixed, variable and the indexed. In case of the fixed plans, it is a low risk option that is available for you. You are guaranteed a certain return for a certain specific time frame. It is one of the simplest plans available in the market and is perfect for you in case you want a specific and fixed payment after retirement. In case of the variable plans, the premiums must be paid into a portfolio of investments. It is thus obvious that these types of annuities thus carry more risk and eventually the payout is also more depending on the kinds of investments made and the performance of the market. Since the risk value is higher in this case, the returns are thus greater. This kind of investment is preferred by the youngsters and all those who like to take risks in life.

In case of the indexed annuity plans, it will only provide a return that is linked to the financial market index. With all these different types of plans available that offers variety of returns; make sure to take proper advice from the experts before signing the contract.About the Author: Robert Cook is a business consultant who has good information on <a rel="nofollow" href="http://www.immediateannuities.com/">annuity</a>. For more information on <a rel="nofollow" href="http://www.immediateannuities.com/">annuities</a> he recommend you to visit <a rel="nofollow" href="http://www.immediateannuities.com/">www.immediateannuities.com/</a>. Article Source: <a href='http://www.articleseen.com/Article_Proper-explanation-about-annuities-as-an-income_125147.aspx'> http://www.articleseen.com/Article_Proper explanation about annuities as an income_125147.aspx</a>

Article Source : http://www.articleseen.com/Article_Proper explanation about annuities as an income_125147.aspx

Author Resource :
Robert Cook is a business consultant who has good information on annuity. For more information on annuities he recommend you to visit www.immediateannuities.com/.

Keywords : annuity, annuities,

Category : Finance : Investing

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