We’ve done our best to help you Understand Life Insurance and explained the differences in Whole & Universal Life as well as Mortgage Protection and Term Life products. In this article we’ll explain the basics of Annuities.
An annuity is an investment product offered by an Insurance company that, in some cases, carries a death benefit option, and is designed to protect in the instance one outlives his or her pension, retirement benefits and/or savings.
Funding an annuity can be done with one of several options.
There are also several options for receiving money from an annuity.
Annuities are paid out in one of only two phases: Immediate or Deferred. With an immediate payout option, the investment is made (EX: $50,000) and the insured (or recipient) begins receiving the agreed upon income installment immediately or usually within 30 days. If the deferred payout option is chosen, the recipient begins receiving the agreed upon income amount after the contracted investment or accumulation period. EX: $50,000 investment and will begin drawing at certain age or in X number of years.
For more information on Annuities and how they work, check out these articles by Nationwide, New York Life and Investopedia or give us a call and speak with our Life Insurance Specialist.
Until next time, take care and remember…. Planning for retirement requires careful consideration of what will happen should you outlive your savings.
Tommy Curtis and Staff
*Annuities vary by company and type of investment. This material has been provided for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Is an insurance agent with integrity and your best interest in mind. Call to speak directly to him.
Address: 509 7th Street
Lake Charles, LA 70601
Office Hours: M-F 9a - 5p (CST)