Annuity is a long-term retirement savings product which protects you from the risk of outliving your assets.

This annuity contract is signed between you and your insurance company, with the help of which you can get future income in return for your contributions.

These annuities can be very valuable and essential additions to your retirement plan. Immediate annuities can help you get guaranteed retirement income payments as long as you live, skip outliving your assets, modify your investments, and protect beneficiaries with a death benefit.

There are different types of annuities: immediate annuities, single premium immediate annuities and fixed annuities.

Immediate annuities are meant to pay owners a determined amount of money on a monthly, quarterly, semi-annual or annual basis. The amount you get will depend on the length of time of your annuity and your initial premium deposit.

Single premium immediate annuities are mostly suitable for providing income in the following situations: terminal funding or pension terminations, retirement from employment, retired life buyouts, professional sports contracts, credit enhancement and loan guarantee transactions.

Immediate annuities offer the consumer the advantages of security, high returns, safety of principal, preferred tax treatment and no sales or administrative charges.

A rated annuity is a type of immediate annuity which takes into consideration your poor health. This is a benefit for a client purchasing an immediate annuity. Those in poor health can have an insurance company pay an elevated income because of shortened life expectancy.

Fixed annuities are characterized by a minimum interest rate. They are guaranteed by the issuing insurance company. Fixed annuity has its focus on safety of principal and stable investment returns. Fixed annuities are safe and secure making them popular with conservative investors and those who want to pinpoint exact returns on their investments.

Variable annuities are a structure for life insurance policies. When entering a variable annuity contract, you face the option of choosing from several different payment schedules. The payouts may be on a monthly, quarterly, or annual basis.

Provide yourself with income and a feeling of security with annuities. Plan your retirement beforehand.

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