|
|
What Benefits Fixed Annuities Can Offer You?
|
|
Posted On :
Jan-04-2012
| seen (588) times |
Article Word Count :
435
|
|
Fixed annuity promises a fixed income to the individuals. This makes these schemes, one of the most preferable financial alternatives for the retirees. The benefits and features of the fixed annuities have been mentioned within this article, to know which you can read on.
|
|
When you retire, your main worry is how you will deal with your essential financial needs. This is where annuity schemes come into focus. Seeing the troubles that the retirees face from time to time, the financial experts have led to several ways with the help of which the people get a chance to earn a regular income from those who offer such income options in the financial market. Annuity schemes are offered by the insurance companies and are available in various forms. Fixed annuity is one of the forms of schemes that are offered under the annuity categories. In addition, variable type of annuities is also there for the retirees to opt for.
Not only does an annuity scheme serve those who retire as per the date fixed, but it also helps the ones who take up voluntary retirement due to certain reasons. Investing in fixed annuities promises the individuals to earn a fixed income, at least the principal amount that remains fixed throughout the tenure of availing the benefits of the schemes. Some of the main advantages of the fixed annuities are as follows:
Being a tax-deferred income, this scheme serves to be the best for the retirees. The insurance companies provide interest on the amount in the account of the individuals. But the annuitants do not require paying taxes on the sum until they start withdrawing the money from their account. The chance that the individuals get to postpone the withdrawal of money and payment of the taxes makes the fixed annuity deals best for them.
The interest rate offered in case of the fixed annuities has been found to be very competitive in current times. It is, in fact, even better than what people expect to receive after investing in a comparable bank CD.
The assets of the insurance companies that offer you the annuity deals act as the backup for the value of the fixed annuity that you invest in. It is the Insurance Guarantee Fund that covers up the amount offered under this scheme. The best thing about this scheme is that it guarantees a minimum interest rate, which is not observed in other deals.
Safety, security and guarantee of an independent life make the fixed annuities one of the best for the individuals. However, it is up to the annuitants whether they desire to receive the income for life or for a fixed period of time. Based on what the desire, they can make their choice as per their convenience.
|
|
|
|
Article Source :
http://www.articleseen.com/Article_What Benefits Fixed Annuities Can Offer You?_128273.aspx
|
|
Author Resource :
Robert Cook is a business consultant who has good information on fixed annuity. For more informatiofixed annuityrecommends you to visit www.totalreturnannuities.com/.
|
|
Keywords :
fixed annuity, fixed annuities,
Category :
Finance
:
Investing
|
|
|
|
|
|
