Someday everyone who is an employee needs to retire and then the monthly income just stops coming. It is this day that the middle-aged citizens worry about and that is the Day of Retirement. It is like an omen waiting out there in the dark. Retirement does continue to bring home some money to the retirees in the form of the social security and the pension but that is not enough to cope with daily necessities and a lifetime that can make one a centenarian and more. The money may just now be enough. People may live longer than their money and then what?
It is questions like these that send one into a frenzy. The insurance policies do not cover enough and there are meant for only specified periods of time. Then surely it is only a miracle that can help you through. No, all you need is an annuity and that will take care of your retirement anxieties.
An annuity is the product of an insurance company and sometimes other financial institutions. It is the safest and surest bet of allowing your money to live longer than you and be passed on to your heirs. There is no need to worry about is there enough and move on to making great plans to enjoy your retirement. Is this true? Yes it is! An annuity can just not help save the day, it will help save your tension and that is surely an indication to a longer and healthier life and lifestyle.
DEFINITION:
An annuity is a series of amounts that are paid at specified periods during a specified time and it is made usually for an annuitant?s lifetime or that of the annuitant?s spouse. Today the US claims US Dollars Four Hundred and Ten Billion or fourteen percent of the complete savings that are saved by families! That is indeed sweet money!
THE VARIOUS KINDS OF ANNUITY AGREEMENTS
Annuities Agreement is as follows:
Deferred or Immediate Annuities
While immediate annuities that pay you as soon as the premium is paid by you, the deferred annuity allows you funds that begin on a specific dates that occur several years later.
Single Premium or Premium by installment
The single premium allows you to deposit only one premium in the annuity company while the installment premium allows you a specified series of payments. These premiums are often flexible in nature and allow you to deposit what you desire.
FEATURES OF THE ANNUITY AGREEMENT
As an annuity is basically the most unique investment choice when it comes to security, they have several more features than any other kind of investment. Some of them are as follows:
The present interest that is compounded highly
The security with regard to the principal
The growth of income that is tax deferred and three fold such as the interest on the principal, on the interest itself and on the taxes.
The Client does not pay any commission charge
Probate is overlooked
Options if the annuitant needs to withdraw
The exchanges that are done without any tax appended
The accounts of the annuitants that are IRA qualified or non-qualified
The principal is secure and only payments are effected with interests
This is one investment that you can?t outlive
The maintenance of an annuity is low-key
THE ANNUITY AGREEMENT CHARGES
Some of the charges that you are likely to incur when buying an annuity are the following:
The Premium charge percentage
This fee is taken from each of the premium that is paid. The percentage sees reduction in later years of the agreement or once a particular point is arrived at after the complete premiums have been paid.
The Fee for the Agreement
There is a fixed fee that is charged either at the time of issue of the annuity or on a yearly basis.
The Fee for Transactions
There is a fee for each payment of the premium or any other transaction that is made.
The Surrender Charge
This Fee is a percentage considering the value of the agreement or of the paid premiums. The reduction in percentage may be lessened after the agreement has been in use for several years.
INTEREST RATES FOR ANNUITY
This rate of interest that is taken to collect the values of the agreement may be lower than the assured interest rate that has been mentioned in the agreement. While the current rate is changeable on and off, the secured rate cannot be changed.
BENEFITS OF AN ANNUITY
There are incomes payments that are paid in 30 day time periods although there are other means of paying an income to an annuitant.
Benefit rates are applicable to the annuities based on age, gender, etc.
The annuitant cannot outlive the funds from an annuity
FORMS OF ANNUITY
The straight life form is that the annuity payments are rendered to you as long as you live. Once you die, the payments stop.
The Life within a certain period means that the annuity is given as long as you live. However if you should die before the specified period of the annuity agreement, then the annuity will continue to the beneficiary of your choice. These certain time periods are ten or twenty years.
Another annuity form is the joint and survivor from where the annuity is payable as long as you or the other who has been named in the agreement is alive. There is a certain period feature attached to this annuity.
The benefit by death is an annuity that should you die before the serial payments begin, the said payments go to your named beneficiary.
The benefit of surrender is when you surrender your agreement and your monthly payments before the payment of period begins. Thus you close the agreement.
Withdrawal form is whereby you can withdraw a part of your annuity investment funds under specific conditions.
The waver of premium benefit is an annuity that will continue to pay its premiums to you if you become handicapped. An early charge is usually applied in order to avail this benefit.
USES OF ANNUITY FOR THE RETIRED
Retirement plans are what the annuities seek to resolve. Therefore annuities are best suited for the retirees as they are based on long-term plans and pay off very well in the future. Today every one is looking at retirement plans for the future because the old now want to be independent. The limitation of the employers has brought much focus to the fore and the truth that employers may not be looked up to finance the retirement necessities of their employees.
Therefore the annuities form the best way of collecting funds as a supplement form to aid social security and pension. The qualified and the non-qualified tags of an annuity refer to the part of the annuity plan has been approved by the Government. A non-qualified annuity can be purchased by anyone and is not part of the employer?s provident fund for the future.
The Deferred Annuities work best for the retired because they allow payments to start after several years. The elderly individuals now look to secure their future.
With retirement annuities that come to save the day, many an elder can now look forward to a peaceful and comfort-filled life for as long as they live. Vive la the retirement annuities!
It is questions like these that send one into a frenzy. The insurance policies do not cover enough and there are meant for only specified periods of time. Then surely it is only a miracle that can help you through. No, all you need is an annuity and that will take care of your retirement anxieties.
An annuity is the product of an insurance company and sometimes other financial institutions. It is the safest and surest bet of allowing your money to live longer than you and be passed on to your heirs. There is no need to worry about is there enough and move on to making great plans to enjoy your retirement. Is this true? Yes it is! An annuity can just not help save the day, it will help save your tension and that is surely an indication to a longer and healthier life and lifestyle.
DEFINITION:
An annuity is a series of amounts that are paid at specified periods during a specified time and it is made usually for an annuitant?s lifetime or that of the annuitant?s spouse. Today the US claims US Dollars Four Hundred and Ten Billion or fourteen percent of the complete savings that are saved by families! That is indeed sweet money!
THE VARIOUS KINDS OF ANNUITY AGREEMENTS
Annuities Agreement is as follows:
Deferred or Immediate Annuities
While immediate annuities that pay you as soon as the premium is paid by you, the deferred annuity allows you funds that begin on a specific dates that occur several years later.
Single Premium or Premium by installment
The single premium allows you to deposit only one premium in the annuity company while the installment premium allows you a specified series of payments. These premiums are often flexible in nature and allow you to deposit what you desire.
FEATURES OF THE ANNUITY AGREEMENT
As an annuity is basically the most unique investment choice when it comes to security, they have several more features than any other kind of investment. Some of them are as follows:
The present interest that is compounded highly
The security with regard to the principal
The growth of income that is tax deferred and three fold such as the interest on the principal, on the interest itself and on the taxes.
The Client does not pay any commission charge
Probate is overlooked
Options if the annuitant needs to withdraw
The exchanges that are done without any tax appended
The accounts of the annuitants that are IRA qualified or non-qualified
The principal is secure and only payments are effected with interests
This is one investment that you can?t outlive
The maintenance of an annuity is low-key
THE ANNUITY AGREEMENT CHARGES
Some of the charges that you are likely to incur when buying an annuity are the following:
The Premium charge percentage
This fee is taken from each of the premium that is paid. The percentage sees reduction in later years of the agreement or once a particular point is arrived at after the complete premiums have been paid.
The Fee for the Agreement
There is a fixed fee that is charged either at the time of issue of the annuity or on a yearly basis.
The Fee for Transactions
There is a fee for each payment of the premium or any other transaction that is made.
The Surrender Charge
This Fee is a percentage considering the value of the agreement or of the paid premiums. The reduction in percentage may be lessened after the agreement has been in use for several years.
INTEREST RATES FOR ANNUITY
This rate of interest that is taken to collect the values of the agreement may be lower than the assured interest rate that has been mentioned in the agreement. While the current rate is changeable on and off, the secured rate cannot be changed.
BENEFITS OF AN ANNUITY
There are incomes payments that are paid in 30 day time periods although there are other means of paying an income to an annuitant.
Benefit rates are applicable to the annuities based on age, gender, etc.
The annuitant cannot outlive the funds from an annuity
FORMS OF ANNUITY
The straight life form is that the annuity payments are rendered to you as long as you live. Once you die, the payments stop.
The Life within a certain period means that the annuity is given as long as you live. However if you should die before the specified period of the annuity agreement, then the annuity will continue to the beneficiary of your choice. These certain time periods are ten or twenty years.
Another annuity form is the joint and survivor from where the annuity is payable as long as you or the other who has been named in the agreement is alive. There is a certain period feature attached to this annuity.
The benefit by death is an annuity that should you die before the serial payments begin, the said payments go to your named beneficiary.
The benefit of surrender is when you surrender your agreement and your monthly payments before the payment of period begins. Thus you close the agreement.
Withdrawal form is whereby you can withdraw a part of your annuity investment funds under specific conditions.
The waver of premium benefit is an annuity that will continue to pay its premiums to you if you become handicapped. An early charge is usually applied in order to avail this benefit.
USES OF ANNUITY FOR THE RETIRED
Retirement plans are what the annuities seek to resolve. Therefore annuities are best suited for the retirees as they are based on long-term plans and pay off very well in the future. Today every one is looking at retirement plans for the future because the old now want to be independent. The limitation of the employers has brought much focus to the fore and the truth that employers may not be looked up to finance the retirement necessities of their employees.
Therefore the annuities form the best way of collecting funds as a supplement form to aid social security and pension. The qualified and the non-qualified tags of an annuity refer to the part of the annuity plan has been approved by the Government. A non-qualified annuity can be purchased by anyone and is not part of the employer?s provident fund for the future.
The Deferred Annuities work best for the retired because they allow payments to start after several years. The elderly individuals now look to secure their future.
With retirement annuities that come to save the day, many an elder can now look forward to a peaceful and comfort-filled life for as long as they live. Vive la the retirement annuities!
