Finding an Annuity Policy
An annuity policy is an agreement that you set up with a life insurance company. Basically, you give a certain amount of money to the insurance company; then, the insurance company invests it and pays you a certain amount of money at regular intervals. Finding an annuity life insurance policy can be somewhat confusing. Before you buy an annuity life insurance policy, you need to decide which type of annuity is right for you.
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What type of annuity works best as a life insurance policy?
Annuities are different from standard life insurance policies. Like life insurance, they can be used to protect your family and provide financial benefits to your survivors after you are gone. However, the primary purpose of an annuity policy is to provide you with a certain amount of guaranteed income. Annuities allow your money to grow on tax-deferred basis, and you don't pay income taxes until you take the money out.
There are several types of annuities. If your goal is to provide yourself with a predictable income during retirement and take care of your spouse or family after you die, then you need to be careful what type you select. Lifetime annuities usually only last until you die, although you can set them up so that the payments transfer to a second person by choosing a "joint and survivor" annuity. However, most people who want to use annuities to provide a death benefit choose a deferred annuity.
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With a deferred annuity, you have to wait for a specified length of time to withdraw the money. If you die before then, your survivors get the money in the annuity plus interest earned since you invested it. If you choose an immediate annuity instead, you can begin receiving payments immediately, but the payments stop if you pass away unless you request a "guaranteed period" annuity. If you die during the "guaranteed period," payments will be made to your survivors until the period is over.
Still confused? Let our life insurance professionals help you find an annuity life insurance policy that meets your needs. Request a quote directly from Annuity-Life-Insurance-Policy.com!