Talk to a local car insurance agent now:
(904) 425-1240
Press play below to listen to our audio commercial:

How Immediate Annuity Calculator Is Used To Determine Financial Capability

The immediate annuity calculator computes the amount of monthly income you will receive based on several factors. Before you buy an annuity, know how much you can gain from it.

This calculator is used to determine the amount of premium you have to pay and the amount of income payment you are guaranteed to receive in an immediate annuity. In determining the potential of your annuity investment, insurance companies need to determine your current situation and your financial circumstances.

Basic Information about the Primary Annuitant

In order to determine your possible monthly income, the insurance company needs to know particular basic information about you – the potential primary annuitant. They need to know your date of birth, your sex, your number of years rated up due to medical underwriting, and the state where you are currently and legally residing.

Basic Information about the Joint Annuitant

If you are applying for a joint annuity, information about the joint annuitant is also required. They need to know the date of birth, sex, number of years rated up due to medical underwriting, the state where currently and legally residing, and relationship to you. In most cases, the joint annuitant is the spouse of the primary annuitant.

Funding your Annuity

The insurance company would also need to know about how exactly you are planning to fund your annuity and purchase your annuity contract. This is needed because it would determine how taxation will affect your annuity payments. You may choose to purchase your immediate annuity through before-tax assets, after-tax assets, Roth IRA, CDs, and the 1035 Exchange.

Before-tax assets are assets whose value is not yet charged with corresponding taxes. After-tax assets, which are the opposite of before-tax assets, are assets with value left after paying corresponding taxes. Roth IRA is a form of Individual Retirement Account (IRA) which guarantees a tax free income for an individual at retirement. CDs, or Certificates of Deposits, are financial documents indicating the amount of money that a certain individual has in the bank. In the 1035 exchange, individuals are allowed to make a tax free transaction in exchanging an insurance-related asset (such as annuities) for another insurance-related asset – if and only if the assets are of “like and amount.”

Aside from the funding options discussed above, you may also choose to pay the premium of your annuity through the earnings you make from the sale of particular private properties like your house. Mutual funds and proceeds from a previous life insurance policy can also be used.

Annuity Premium and Income Withdrawal Options

In order to compute how much regular income you can receive, you also have to indicate the amount of the lump sum payment you are planning to apportion for your annuity. You will also be asked about the amount of money that you wish to receive as annuity income, the number of years you want to receive annuity payments, the number of times you want to receive your income payments, and the date you want to start receiving annuity income payments.

Before you purchase an annuity, you have to make sure that you know what you are doing. Take advantage of immediate annuity calculator available on the web. These calculators are important in helping you decide about your potential investment. Before anything else, you have to know how much you can gain from purchasing a particular annuity.

Got more questions? Enter your zip on the top of this page. Answer some basic questions to compare multiple providers to find out your highest eligible rate. The information you provide will be used by each of our partners in providing you different rates depending on your individual circumstances and situation.