A Couple Of Reasons Why It Is Good To Choose An Annuity Account

By Author: Kathy Johan
Total Articles: 61
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With so much financial advice available, it can be hard to decide who to follow. This glut of information can be overwhelming and may leave you unsure as what to do with your money.

It will definitely pay off if you take ample time to think over your choices and whether you should save or invest your cash into an account.

To help you through the minefield, here are a couple of the top reasons to take out an annuity and how it can help you to get in control of your finances, compiled with help from InvestmentSense.co.uk staff.

One of the main advantages of a retirement annuity is that it allows you to receive the security of a fixed income, which you will get instead of your pension. This can give you the peace of mind of knowing exactly how much money you will have at your disposal; you will then be in a much better situation to budget. Due to this, having an annuity is like having an annual fixed wage; meaning that you will have the stability and consistency that you are used to.

If you do take out an annuity then in the event of your death before you reach the appropriate age your family can still ...
... benefit from annuity protection. If you go with this option, a spouse or partner could be entitled to a lump sum upon your death. Although, this would be subject to a tax charge; it does ensure that your money will not be lost and that your family will receive some form of financial support. This feature of an annuity means that it can help your family when they need to pay for your funeral and can make the whole ordeal less stressful.

If you live a unique style of life or are in very poor health then you should be able to take up the offer of further life insurance. This can be particularly suitable if your lifestyle factors, such as drinking or smoking, suggests that you may live less than other people do who have different lifestyles. Some of the other medical conditions that may make you eligible for this type of policy include angina amongst other health problems you may experience. Accordingly, if there is a fear that you will not live beyond 75 years then you could well find it reassuring to know you can claim some of the annuity.

It is easy to begin an annuity as normally your own pension provider will usually give you the chance of an annuity when you are close to retiring. This means that if you are interested in an annuity then you don't have to do anything, patiently wait to be contacted about it. However, it should be noted that until you are 75 years old you are not obliged to have an annuity but the limit on age may be lifted in the next few years. Accordingly, it could be the best idea to look for the best annuity rate available or listening to an expert's advice, like the people who work at InvestmentSense.co.uk.

An annuity is available with a diverse range of choices, making them ideal for a range of different personal circumstances. For example, you might want to take out a single-life or joint-life annuity. A single-life annuity gives you a monthly income for the rest of your life and stops on your death; on the other hand a joint-life annuity will carry on paying out to your spouse after your death. You can even select how much money is paid out; as you might want half or even two thirds of the original income to be paid to your spouse. There is even inflation proof annuity available.

Hopefully, these benefits above should help you to decide where you should put your hard-earned cash and whether you can get the most out of it with an annuity.