Secure Your Future With Appropriate Annuity

By Author: Robert Cook
Total Articles: 111
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Old age is known as the second childhood. People want to lead this phase peacefully. At this juncture, of life monetary support is very essential for senior citizens. Steady financial back up enables them to lead a stress free life. Therefore, one should start planning for annuities before his retirement. Proper investment with right annuity often gives a handsome return to the consumers.

One may not have a clear concept regarding annuity. It is an investment plan done through any insurance company. A contract is formed between the company and the client. Different annuities are launched and sold by the insurance companies, financial planners, banks, brokerage firms or investment advisers. Whenever you are making any deal with the insurance organizations, certain assurances will be offered to you. These promises mainly depend upon the issued contract, and the particular annuity you have chosen. If you consult with a financial expert, he will let you know about the three different schemes of investment. The major schemes are-

• Fixed or variable annuity is very close to bank deposit certificates. ...
... The insurance companies assure their client that after a particular period of time, he will get a return against his invested amount. However, the investor will get greater interest rate if he invests for a long period of time. The rates may differ according to the financial condition of the present market. The investor is free to choose for how long he wants to invest.


• Immediate annuity- In case of immediate annuity, the insurance company will immediately send you checks. This is mainly designed for couples or for an individual who wishes to rely on that particular amount. The checks will be sent to you as per your requirement. While making the contract with the insurance company, inform them whether you would like to receive the annuity amount monthly, quarterly or annually.


• Flexible annuity- This kind of annuity is mainly devoted in stock markets. Like all other annuities, it also offers a fixed and guaranteed income. However, the profit of the investor depends upon the market condition. This plan can either bring huge profit or great loss depending upon the financial condition of the market. It offers a flexible income and, therefore, it is often called flexible annuity.

Therefore, before you apply for annuities take proper guidance from finance experts. They will tell you the current annuity rates and which one will be beneficial for your future.