Fixed Annuities Guarantee You Financial Security

By Author: Robert Cook
Total Articles: 111
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Are you at the verge of retirement? Have you secured your finances? Have you made any sound financial investments, which will fetch you an additional source of income? If no, than its high time that you invest in the annuity schemes that are available in the market. Annuity investments will prove to be your license to enjoy a hassle free life after retirement. Among the different kinds of annuity plans, the fixed annuities are considered be the best by the pension holders, as this particular scheme involves minimum risk factor.

Annuity can be defined in simple term as a contract that is drawn between an insurance company and the investor. Fixed annuities ensure you a steady flow of income on a monthly basis. These annuities offer you a fixed rate of interest. As a result you are not subjected to the economic fluctuations in the world market. You can be sure of getting a fixed return every month.

Fixed annuities offered by different insurance companies are very much like the CD investments. In addition to the guaranteed interest rate, the fixed annuity schemes, in some cases provide rate ...
... of interest higher than the CDs issued by the banking institutes. Fixed annuities are of two kinds – immediate annuities and the deferred annuities.

Unlike the deferred annuity plans which keep on accumulating interest rates, the immediate annuity schemes will provide you with a fixed payment, which in turn will be decided by the age of the annuitant and the size of the annuity amount which you have invested. Fixed annuities are highly preferred by the retirees as they can predict the payout size, and because of the fact that this regular payout supplements their retirement income.

According to the financial experts, for annuitants who have invested in fixed annuities, it’s better to avail regular installments, because if you take the return at a single go than you will have to pay more tax as compare to the monthly payout.

Lifetime annuity policies are issued by the insurance companies. Lifetime annuity scheme provides you with life coverage. The validity of these schemes is not meant for only a particular period of time. More the life expectancy better is the rate of interest for the senior citizens. By investing in lifetime annuity plans, you will not only secure your own life but also the life of your spouse and children, as it provides you with an option to transfer your income to another person in your family, in case of your death. Lifetime annuity plans are also referred as lifetime income annuity, non refund, single life, and straight life.