Financial stability is one thing that many retirees look for after leaving employment because it largely determines how their sunset days will be like.
Income annuities come in handy to ensure this becomes a reality right from the early stages of employment by ensuring that future financial needs are well taken care of.
The insurance contract is designed by insurance companies to provide additional monthly earnings besides what is provided by the social security or pension amounts received by a retiree.
An individual is supposed to pay a premium to the insurance company, which is in turn translated into payouts to help the individual meet future financial obligations.
The premium is paid to the annuitant is lump sum and is what is referred to as single premium annuity.
It may also be paid over a certain period of time in terms of flexible premium annuity.
A one time single payment can also be made and this is what is referred to as an immediate earnings annuity.
Premiums can be flexibly or multiple but, this mostly happens to a deferred earning annuity.
This is when payments to the retiree are made in later years in future.
Taking an immediate earnings annuity comes at a great advantage as it allows the annuitant to begin the annuity period without delays and this is usually thirty days from the time premium is paid out.
There might be an accumulation of a deferred annuity on the premium if this goes on for a long period of time.
The benefit that comes with taking this annuity is that annuitants have the liberty to select how often they would like to receive payments.
This may include monthly, quarterly, semi annually and even annually.
One is also given the option of having regular increment for earnings since the income stream is premised on long term benefits.
An annuitant is also given the opportunity to decide on the continuation of payment in this earning stream to other members of the family such as the spouse after passing on.
There is also a possibility for the scheduling of payments in the case of a married investor.
This ensures that earnings is paid throughout the lifetimes of both the investor and the spouse instead of having them paid in a single life time.
Payments to the spouse can be done as joint payments or be reduced to a certain percentage according to the assumption of the investor about the future cash flow needs.
Investors with concerns about estate planning have an option for crafting the agreement so that a certain percentage of the initial investment can be passed on to others.
One of these choices is the returning of the entire amount of the initial investment as well as the payment of the original amount with the exclusion of any amount that has been paid out.
Income annuities also come with the benefit of inflation protection.
There are structured payments that tend to increase with time and being able to adjust interest rates and the payment size are some of the strategies that help cushion investors from this.
Income annuities come in handy to ensure this becomes a reality right from the early stages of employment by ensuring that future financial needs are well taken care of.
The insurance contract is designed by insurance companies to provide additional monthly earnings besides what is provided by the social security or pension amounts received by a retiree.
An individual is supposed to pay a premium to the insurance company, which is in turn translated into payouts to help the individual meet future financial obligations.
The premium is paid to the annuitant is lump sum and is what is referred to as single premium annuity.
It may also be paid over a certain period of time in terms of flexible premium annuity.
A one time single payment can also be made and this is what is referred to as an immediate earnings annuity.
Premiums can be flexibly or multiple but, this mostly happens to a deferred earning annuity.
This is when payments to the retiree are made in later years in future.
Taking an immediate earnings annuity comes at a great advantage as it allows the annuitant to begin the annuity period without delays and this is usually thirty days from the time premium is paid out.
There might be an accumulation of a deferred annuity on the premium if this goes on for a long period of time.
The benefit that comes with taking this annuity is that annuitants have the liberty to select how often they would like to receive payments.
This may include monthly, quarterly, semi annually and even annually.
One is also given the option of having regular increment for earnings since the income stream is premised on long term benefits.
An annuitant is also given the opportunity to decide on the continuation of payment in this earning stream to other members of the family such as the spouse after passing on.
There is also a possibility for the scheduling of payments in the case of a married investor.
This ensures that earnings is paid throughout the lifetimes of both the investor and the spouse instead of having them paid in a single life time.
Payments to the spouse can be done as joint payments or be reduced to a certain percentage according to the assumption of the investor about the future cash flow needs.
Investors with concerns about estate planning have an option for crafting the agreement so that a certain percentage of the initial investment can be passed on to others.
One of these choices is the returning of the entire amount of the initial investment as well as the payment of the original amount with the exclusion of any amount that has been paid out.
Income annuities also come with the benefit of inflation protection.
There are structured payments that tend to increase with time and being able to adjust interest rates and the payment size are some of the strategies that help cushion investors from this.
