Knowing More About The Lifetime Annuity

By Author: Robert Cook
Total Articles: 111
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Dependency is what everyone avoids. Most of the times, the retired individuals have to remain dependent on either their children or other individuals for the fulfillment of their small needs and desires. This is where the lifetime annuity schemes come into immense focus. After retirement, everyone desires to lead a convenient life. But the financial inabilities hardly allow the individuals to fulfill the dream of independent life for themselves. The features and benefits of the lifetime annuity schemes are many and hence the individuals must know about them to be aware of the facilities that they can enjoy after retirement.



Annuity is a contract between an individual and the insurance companies. You may wonder how an insurance company could offer such deals besides the home insurance or other property insurance. Isn’t it? But one thing that you can take into consideration is that securing your post-retirement life can also be viewed as a type of insurance that safeguards your post-retirement life. There are numerous schemes that are available in the market in recent times, but lifetime annuity is mostly ...
... preferred. This is because the benefits that the life annuity offers, as the name suggests, are for lifetime of the retired personnel.



Lifetime annuity is one of the most reliable schemes that are preferred after the retirement. It ensures benefits to the retirees once they pay a lump sum or sum through installments to the insurance companies. The annuities are found into two broadly classified categories. One of them is the immediate Lifetime annuity and another is deferred annuity. In case of immediate annuity, as soon as the individuals pay the initial payment, that is the premium, the senior citizens are subject to receive the payment instantly without any delay.



While, in case of the deferred life annuity, the withdrawal of income can be postponed. As a result of this very provision, the retirees can postpone receiving the money to the period when they want it the most. The best thing about this type of lifetime annuity is that the individuals, if defer the payment, are not liable to pay any taxes until they start withdrawing their income from the insurance annuity account.



The retirees can also think of taking the amount as fixed income or variable one. The second option is subject to fluctuations as per the changing rate of interest in the market. Thus, be very careful and alert while choosing a life annuity scheme for future independence in financial terms.