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Pros And Cons Of Immediate Annuity Payouts

Most of you looking for a source of income during retirement are likely to be tempted by the attractive nature of annuity payouts. This should not be the case at all. Take enough time for soul searching to avoid any later regrets and misery. You cannot afford to fall into such a trap when actually you can keep off from the occurrence of the same. The truth however stands out that immediate annuities come along with great benefits that are very attractive indeed. Nonetheless, this should not be bait that will; lure you into making the biggest financial blunder in your lifetime.

Pros of Immediate Annuity payouts

The two main pros of immediate annuity payouts are a high payout and security of your investment.

High payout: There is a high likelihood of receiving a huge payout when you apply for an immediate payout. This will be determined by your current situation and the choices you make as an individual. For instance, 100,000 dollars worth of investment might earn you 700 dollars every month as payments in return. This figure is way beyond a return at 8 percent. Given the situation of the current market, it is just too good to be true; very appealing and attractive. Give this a second thought then finally say Yes or No.

Security: Although your income is not fully insured, the insurance company from which you purchased the annuity will provide the necessary backing. A sharp contrast exists if the current scenario is compared to what it used to be previously. However little it may seem, it is better than nothing. More so, the incoming payment is guaranteed irrespective of the unfavorable fluctuations in the stock market. You need not to worry because your income will still flow in unaffected. Your insurance company takes all risks and covers arising costs and expenses.

Cons of Immediate Annuity Payouts.

Having seen the benefits of immediate annuity payouts, you cannot downplay the flip side of this coin.

No access to capital: when you eventually make a choice to buy an immediate annuity, you have actually parted with your capital for good. Make no mistake of believing that the funds are at your disposal in case of an emergency. The contract cannot be reversed and so no cashing in is ever possible. Your income will flow in if the company continues operating .any attempts to alter the monthly payment or get more returns in case of an emergency will bear no fruit however much you try. You will be forced to resort to other sources to handle the emergency.

Your payout isn’t the return your money earns: whatever you get back in form of income is the sum of principal and interest. Though it might pass unnoticed, a large percentage of what you receive yearly actually comes from your investment and not the returns. Given a close look, it is clear that the returns are a paltry 3.2 per cent this is not worth taking the risk since the market might experience a drastic rise in interest rates even before your annuity matures.

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Conditions of Having Deferred Annuity

Deferred annuity is a retirement policy where the depositor or the owner delays or defers   payments after investing and starts getting allowances in the future dates. In this case, the annuity gets interest for several years. For an investor who does not want to get income and wishes to delay payments to avoid being taxed on funds, they do not require immediate annuity after their retirement.


Profitable deferred annuities are offered by insurance firms through insurance agents, stock brokers and banks. The investor gives the insurance group either one big premium or if allowed, he or she can make additional premiums.

A deferred annuity starts to make payments at the end of agreed Accumulation Period after retirement, this continues for as long as the beneficiary lives. It protects the policy holders from draining their funds before death, in case they just decided to keep their lump sum money in their bank account. But for those who takes up the policy, even when all of their funds in the agreement exhausted, the insurance firm will still give monthly allowances while as the beneficially is still living.

The time when the owner starts getting funds from the insurance firm is called Payout Period. The investor will be presented with multiple options, for their payout. One may opt for a monthly income as long as he or she lives or a onetime payment like 20 years or 25 years after the retirement, depending on his life expectancy.

Unlike with the case of immediate annuity, where one starts getting monthly earning right away or after one year after making a one lump sum purchase. Deferred annuities policy are not necessarily bought with a lump sum premiums, but can be done monthly, quarterly, or yearly with prior agreement with the insurance company. The investor too can get periodic earnings for life in different patterns, like 10, 15 or 20 years in his or her life.

One is free to withdraw the savings from the deferred annuity before the end of the accumulation period at any time, but comes with some charges. You can also choose to opt out of the plan and close down the account, but this attracts some costs based on the conditions tabulated below.

•             If you opt for the plan within the initial years of opening it, you will be will charged surrender cost by the insurance firm.

•             You will also be taxed on any interest earned for the period the account was in operation.

•             You will also pay 10% additional tax on your savings interest if you take a lump sum payment before attaining the 59.5 years of age.

Deferred annuity is best suited for people:

•             Whose currently tax rate is high, but they are expecting it will go down the future. They can avoid paying some tax by saving their many in a deferred annuity, and then withdraw the funds in installments when tax rate is lesser.

•             Those that have idle lump sum cash and planning to use it right away and want to accumulate more for departure time.

•             Whose income keeps on fluctuating, some years is higher and lower in other years, to avoid future uncertainty.

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What Is Annuity? A Look at Lifetime Annuity and Its Features

If you’re asking about what is annuity, there’s the need to explore all the possible avenues about the subject. Annuity is very verse especially when you consider the avalanche of information   on the topic. There are several pieces of information you need to know about its types and their features.  Lifetime annuity is one of the several aspects you need to understand. Let’s examine what it stands for in this write-up.

Actually, Lifetime annuity   is known for its reach offers and benefits.  It’s simply a kind of annuity that pays you a specified income amount for the rest of your life. It’s a kind of contract you enter with an insurance company.  You invest your lump sum of cash and allow it to work for you. The insurance company will be paying you   dividends all through your life time.  This kind of annuity is very common among several insurance companies in the US.   Many people who want to enjoy steady flow of income during retirement like going for it.

Actually, Lifetime annuity demands a lot from the investor. You’re expected to use your pension fund for the investment process.  When you do that, the insurer will then agree to pay you regular income from the returns coming from the pension fund invested.  In most cases, the income payment can be made quarterly or monthly. It can also be made yearly or twice in a year.  There are terms and conditions that apply to the investment. You need to check them out before investing.

Oftentimes, lifetime annuity is also known as “immediate annuity”.  Normally it begins with a unique proposition.  You’ll hand over a lump sum to the insurer of your choice.  In return, the insurer pays you a guaranteed amount for a specified period of time. This can last for the rest of your life as well.

You need to know that your initial investment   will no longer be paid you. It belongs to your insurer after your demise.  However, the income payments will still continue for life. Your beneficiary receives that after your death.  Your spouse or child   can be the beneficiary. You have to include that at the initial signing of the contract. You also need to intimate your beneficiary about your investment at all times. This will help him or her to pursue the income payments in case the insurer begins to misbehave.

In getting to know about what is annuity, you’ll discover that Lifetime annuity has a lot of benefits.  In the first place, you’re sure of steady flow of income through the pension fund you invest.  You can also choose when to receive the income payments. You can also decide to leave the payment   until a certain period in your retirement state.  You can equally decide to have access to your income payment once or twice a year.    In fact, lifetime annuity is very flexible.  You’ll always have the right to make choices.

Meanwhile, there are some negative aspects of lifetime annuity.  When studying about what is annuity, you must not forget to look at the dark sides.  Lifetime annuity is always taxable. You’ll be paying tax all through the period of the annuity.  This can reduce the amount of income payment you’ll be receiving.  In any case, you should always be properly guided by a good financial adviser before you think of choosing this kind of investment option.

What is Annuity? A Look at Immediate Annuity

Annuity has always remained a veritable means of generating steady income for retirement. If you succeed in discovering what is annuity and how it works, you’ll always have a good time when you retire. It’s basically a contract you enter with an insurance company whereby you invest you lump sum and expect the company to pay you income returns at regular or deferred intervals.

Annuities have various forms or types.  Immediate annuity is one of the types you must know a lot about.  It’s a unique investment option that allows you quick access to the investment you make within a short period of time.  In several quarters, it’s also known as payout annuity.   The regular premiums you invest in the immediate annuity are not paid upon your death. On the other hand, you’ll be receiving regular income payment until death.

In most cases, immediate annuities begin to pay right away once you’ve made the initial purchase payment.  People who are ripe for retirement usually go for such investment options. You can easily enjoy steady means of income once you invest into the annuity.  If you’re already having a deferred annuity, you can request it to be converted into immediate annuity so that you can reap immediate income returns.

There are benefits that come with immediate annuity. It’s always important you look for benefits each time you take a look at what is annuity.  Immediate annuity usually begins to pay right from the time you make the initial investment.  This can help you not to outlive your investment when you eventually retire. You simply keep on receiving the income payments right from day 1 to the time you retire.

You also have the option to choose fixed immediate annuity.  This option ensures regular income flow at fixed intervals.  The income will also keep flowing for several years even before you retire.

Immediate annuity can prevent you a lot from worrying about your investment since you’re sure of receiving regular payments from it.  You’ll always have enough cash to settle your expenses. You can easily pay your bills and also enjoy regular shopping since you’ll always have access to cash.

If you also opt for a variable immediate annuity, you’ll still gain. You’ll have to reserve the buying power of the investment ahead of any inflation that may spring up anytime.

Having seen the benefits of immediate annuity, there’s also the need to check out the negative aspects.  In the first place, there’s a possibility of paying high charges when you go for immediate annuity.   If for instance you go for a fixed immediate annuity, it guarantees you a set of payment for a period of time.  Yet, you’re likely to live longer than that specified period. This may force you to lack regular income flow.  Inflation may also cause your fixed payment to change over time.  This will then reduce the amount of income payment you’ll be receiving.

In any case, there’s always the need to be well informed before getting into any kind of annuity investment. Always engage a good insurance agent to help you out.

Watch Your Back – Know When to Sell your Immediate Annuity

Some types of immediate annuities can be sold by their owners to interested buyers or investors. Annuities are usually sold in the secondary market where owned security properties can be sold or traded. For the purposes of this book, the immediate annuity is divided into two types – the qualified and non-qualified annuity. This division is based on the type of funds or assets that are used to purchase the annuity contract.


Qualified Immediate Annuities

Qualified immediate annuities are annuities considered as a retirement account that goes through certain requirements under taxation laws. This kind of immediate annuities, which are also called retirement annuities, are not allowed by the Internal Revenue Service to be sold by annuity owners. These annuities are classified as Roth individual retirement annuities and are non-transferable. They are purchased from pre-tax assets, which means that the value used to purchase the annuity was not yet subjected to taxation. Therefore, the regular income received in qualified annuities is taxable.

Annuity rates in qualified contracts generally apply to both the female and the male sex. However, some states require different rates for females and males.

Non-Qualified Immediate Annuities

Non-qualified immediate annuities are purchased with after-tax assets. This means that the money used to purchase the annuity had already been subjected to taxation. Therefore, a part of the income from non-qualified annuities is measured, using a particular exclusion ratio, as a return from the annuity principal (which had already been taxed). This part of the annuity income is exempted from tax. Examples of after-tax assets are earnings from the sale of a private property (like your house), Certificate of Deposit, proceeds from a previous life insurance policy, and mutual funds.

Non-qualified annuities are not considered as retirement accounts and are transferrable. Because they are transferrable, some states allow annuity owners to sell their accounts or contracts. When an annuity owner sells his/her annuity, he/she will receive a lump sum payment from the buyer of his/her contract. After the sale, the person who bought the annuity contract will be the one to receive the remaining income (usually every month) from the annuity.

Annuity rates in non-qualified contracts are generally different for females and for males. There are some states, however, where unisex annuity rates are required.

Reasons Why Annuitants Sell Their Annuities

Most annuitants who sell their annuity contracts want to get a lump sum payment instead of receiving a monthly income. Generally, they are young annuitants who do not have to save for long term goals – like retirement goals. On the other hand, older annuitants (most of them retirees) generally do not sell their annuities because they want a stable source of income that can last as long as they live.

You might want to sell your annuity contract because you badly need a huge amount of money as soon as possible. You might need to pay off a debt or to purchase a house. In this case, you might opt to sell your annuity so that you can collect the amount of money you need at the moment.

Look Before You Leap

Depending on your current situation, selling an annuity can be advantageous.  It does not mean, however, that you should do something just because you are allowed to. Make sure that you will make an informed decision. Ask help not only from your family and friends but also from annuity experts.

In selling your annuity, you have to keep in mind that you will not be able to get the full value of your annuity account. Generally, investors will only be interested if they will profit from the transaction.

Types of Immediate Annuity – Determine Which Is the Best for You

If you are preparing for your retirement, buying an immediate annuity might be the best investment for you. This type of annuity has two basic types – the Fixed and Variable annuity.

The immediate annuity is appropriate for you are already close to retirement and you want to get for yourself a regular and stable income. This type of annuity allows you to immediately receive income for a certain period of time or for as long as you live. You can start receiving annuity income immediately after you have given your payment for the annuity.

Immediate Fixed Annuity

In fixed annuities, you are going to be paid a fixed income every month from the date you decide to start receiving money. The rate of return you will receive is fixed and will not change no matter what happens to the economy or to the stock market. Thus, if you are afraid of market downturns, recessions, and economic depressions, the fixed annuity is appropriate for you.

One of the chief advantages of the fixed annuity is tax deferral. Income from a fixed annuity is tax-deferred. The fixed annuity owner’s investment is exempted of any tax while it is still accumulating. Taxes are charged only when the owner, or his/her beneficiaries, decides to withdraw money from the annuity. This feature allows you to make your money grow faster. In addition, you are given control over when to pay your tax. Because you are only charged with tax every time you withdraw from your annuity account, you are in control of when to pay your taxes.

Moreover, taxes can be postponed when the owner of the annuity dies and he/she named his/her spouse as the beneficiary of the annuity account. The turning over of the account is carried out without taxation. Moreover, the spouse (the beneficiary of the original owner of the annuity), can also transfer the annuity to an heir who can have as long as five years of additional tax deferral.

The fixed annuity is a stable investment especially designed for retirement purposes. If you are retiring soon, the immediate fixed annuity is the best choice for you.

The Immediate Variable Annuity

In variable annuities, your money is invested in stocks, mutual funds, and bonds. Thus, the monthly income you receive is dependent on the condition of the economy and the stock market. If the stock market rises, the rate of returns you receive from a variable annuity will increase. On the other hand, if the stock market falls, your annuity rate of returns will decrease. It goes without saying that variable annuities involve greater risk than fixed annuities. However, with greater risk comes a higher possible return. If you do not fear the fluctuations in the stock market, the variable annuity could be a good choice of investment. Just like in fixed annuities, income in variable annuities is tax deferred. You can choose between getting the returns on a short term basis or on a long term basis.

The type of immediate annuity you choose depends on your goals and your priorities. If you are still in the process of accumulating money before you retire, you are more likely to invest in immediate variable annuity. One the other hand, if you have already accumulated enough money that will last from the day you retire to the day you pass away, you are more likely to invest in immediate fixed annuity because it gives you a stable monthly income. Where you put your money is an important decision. Before you decide on the type of annuity to invest in, weigh your priorities, you goals, and all the possibilities.

The Immediate Annuity Glossary – All the Terms You Should Know!

A lot of uncommon terms are used in annuity contracts. This immediate annuity glossary defines the terms you should know for you to be well-informed.

1035 Exchange

The 1035 exchange is the term used to refer to the tax-free transfer of an annuity contract from an insurance company to another insurance company.

403(b) Plan

The 403(b) Plan is basically similar to the 401(k) Plan, but it is generally offered by nonprofit organizations. This plan allows retirement savings plan contributions from the employees to grow on a tax-deferred basis until they are withdrawn.

Account Value

Account Value refers to the total value of the annuity. That is, the sum of the principal and the interest.

Amount Certain Payout

In the Amount Certain Payout, the annuitant decides how much income he/she will receive monthly then the insurance company will decide about the length of time he/she will receive income.


The annuitant is the owner of the annuity account.

Asset Allocation

Asset allocation, used in variable annuities, refers to the distribution of assets across multiple classes in order to meet an individual’s financial goals in terms of risk and length of investment.

Back-End Charge

Back-end charge, also called surrender charge or withdrawal charge, is the fee that an annuity owner pays to the insurance company for withdrawing money from the annuity before the appointed date.

Bailout Provision

Bailout provision allows a fixed annuity owner to withdraw all of his/her annuity funds without a withdrawal charge when the interest rate unpredictably falls below the rate specified in the contract.

Balance Inquiry

Balance inquiry is a tool available online that allows annuity owners to check the balance of all accounts held within an annuity.

Benchmark Index

Benchmark index, also called stock index or bond index, measures the performance of market allocations in a variable annuity.


The beneficiary is the person chosen by the annuity owner to receive the annuity income and benefits upon his/her death. This is typically the annuitant’s spouse or children.

Bonus Rate

Bonus rate, also called bonus annuity, premium bonus, or first-year bonus rate, refers to a feature common to all kinds of annuities. In this feature, the insurance company basically adds a certain amount of money to the annuity owner’s account during the first year. This additional money, or the bonus, can be given in the form of a higher interest rate during the first year, or a partial premium match by the company.

Death Benefit

The death benefit is the amount given to the annuity beneficiary or beneficiaries upon the early death of the owner of the annuity contract.

Dollar Cost Averaging

Dollar cost averaging is the investment of a fixed amount of dollars at regular intervals in a variable annuity.

Enhanced Dollar Cost Averaging Program

The Enhanced Dollar Cost Averaging Program provides a higher interest rate in particular cases, like new minimum purchase payments within a limited period of time.

Exclusion Ratio

In an immediate annuity payment, exclusion ratio is the ratio of taxable to non-taxable proceeds.

Expense Ratio

Expense ratio is the percentage of an annuity account that is paid for insurance and investment charges every year.

Issuance Age

Issuance age is the age of the annuitant when the annuity policy was issued.

Life Only Payout

In the Life Only Payout, the stream of income stops when the annuitant passes away.

Life with Period Certain Payout

In the Life with Period Certain Payout, the annuitant receives a steady stream of income for a certain period of time (can be for 5 years, 10 years, 15 years, 20 years, 25 years, or 30 years)


Yield is the term used to refer to an annuity’s rate of return.

Pros of Immediate Annuity – Bite Into The Bright Side!

Almost everything in this world possesses their own dark side and bright side. Immediate annuity quotes are no exception in this. In buying an immediate annuity, try to look in its bright side and not only in the dark corners of it. Even if immediate annuities have its cons, the pros could always outweigh it all making your purchase a worthy one.

Immediate annuity quotes present benefits and advantages. It offers many things right just in front of you. If you want security, immediate annuities may be the answer for you. Depending on your circumstances, they could provide a guaranteed flow of income, which you can outlive, or you can receive for a period. With immediate annuity, you may not have to worry about your financial stability for a period because the immediate annuities.

Immediate annuities also bid effortlessness and easiness. For a very long time, you are exerting so much effort in your work. After your retirement, you can achieve both of this if you buy an immediate annuity. Why so? Stacking your money in a safe place requires effort and a lot of monitoring. Immediate annuities will do it all for you the moment you sign a contract. Your money is safe and then you are at ease that you invested in a secure place. You also do not have to deal with investments reports or stock market performances because the company handles it all for you.

The taxation of immediate annuity is one of the alluring features of immediate annuities. No matter how you avoid tax, you will definitely face it somehow. In immediate annuities, taxes are deferred for a moment. Your money is stacked in a place where the tax can get no hold of it. It will only be taxable the moment your money is withdrawn. Not all of your money in immediate annuity is taxable too. Only the interest is considered as income. The principal is nontaxable because of the initial investment. You still pay tax. But so what? You can still save a lot through immediate annuities anyhow.

In immediate annuities, you are given a chance to be flexible. Flexible in a way that you are able to choose between many options in payments. How you want to be paid is how the company is going to pay you. If you want to be paid for a specific span of time only, there are different types of annuities you can choose. If you want a lifetime flow of income, you can have it. If you prefer fixed annuity or variable annuity, it is up to you. The company will back you up whatever kind of annuity and investment you opt for.

The payment is not the only one that can be flexible adjusted in immediate annuities. There are still more options you can choose from. You can definitely pick what kind of immediate annuity that suits your need the most. There are the single-life annuities and joint life annuities, which could be periodically, or lifetime based.

The returns that annuitants receive are higher in immediate annuities. The rate of interest immediate annuities offer to their clients are generally higher than any other investments’ rates like Treasury and CD rates. In every payment, a portion of the principal is given back along with the interest rate, which makes the annuitant receive a high amount of payment.

The customer is always right, they say. Make sure to set your decisions right this time. Now that you have looked on some advantages immediate annuities can offer you. There are a lot more out there. Find it out yourself.

Indexed Annuity vs Immediate Annuity – Weigh the Differences

In selecting what annuity type caters your needs and wants at the same time, you have to evaluate the options very carefully. Look at their similarities and weigh their differences so that at the end you will have no regrets in buying one.

Two annuity types are greatly considered when it comes in annuity buying. Prospective annuitants are torn between the choice of indexed annuity and immediate annuity. Which is the more appropriate one for you? Ponder on each type and consider weighing both of each first.

Indexed annuity is a kind of annuity that has payouts that are tied in financial index. Sometimes it is also known as equity-index annuity. This kind of annuity is designed especially for those clients who wish to own an annuity that gives payment based on interest rate of an equity index. The contract of this annuity guarantees an annuitant that the he or she will receive payments that is related to the positive return in the index. No matter what happens, the annuitant will still receive a fixed return from his or her principal payment.

Indexed annuity sounds confusing right? It is because indexed annuity is a meeting point of fixed annuities and variable annuities. The payments that the annuitants receive are based on a certain market index. This market index is most of time the S&P 500.

Indexed annuities have limitations also like some amounts that are credited may be capped, upside and downside. That means that if the upside cap is 8%, the account will only be credited 8% even if the S&P 500 rises beyond that. However, even if this is the case, many investors who are afraid of deflation choose indexed annuity because there are more probabilities that this kind of annuity could pay more over time.

On the other side, immediate annuity quotes offer annuitants an immediate payout not long after the purchase of the annuity. They can choose between immediate fixed annuity and immediate variable annuity. In immediate annuities, it is obvious that annuitants can choose to have their investments fixed or variable. Meaning, if an annuitant choose to have immediate variable annuity, the interest rate of his or her annuity can go down or low depending on the performance of the investment and stock market. If, on the other hand, he or she goes for immediate fixed annuity, the interest rate of his or her payment will not be affected by the ups and downs of investments and the investment company. The rate will be the same rate until the contract expires.

Immediate annuity quotes are also quite popular among retirees because of its features. If you want to buy an immediate annuity, you just have to pay a lump sum of money as a principal. This money could be taken from their retirement plans and funds such as the 401 (k).  This kind of annuity can also include beneficiaries in the annuitant’s account. The more beneficiaries the annuitant has, the lower payment he or she will receive each payout.

That being said, we can see that the indexed annuity and the immediate fixed annuity somehow look similar. It is because they are both fixed. An immediate annuity could either be fixed, variable or indexed. But, an indexed annuity does not necessarily need to be an immediate annuity.

Both of these annuities – the indexed annuity and immediate annuity aim to provide financial assistance and guarantees financial stability over a period of time. Both look and sound promising but it is important to consider and assess your own situation before buying one. Choose what you think is best for you.

The Basic Facts on Immediate Variable Annuity

ImmediateAnnuityImmediate variable annuity is one of the most popular annuity types nowadays. Now is the right time to take a glimpse of what it is before considering buying one.

There are two main types of immediate annuity. These are the immediate fixed annuity and the immediate variable annuity. Immediate fixed annuity and immediate variable annuity have similarities and differences, their disadvantages and advantages.

These two kinds of immediate annuity have similarities and differences in their immediate annuity quotes. Immediate fixed annuity gives off a flow of income to an annuitant without a change in the rate of return. The rate of return is fixed until the contract terminates. That is why this kind of immediate annuity is not flexible to inflations of stock market and investment performances. On the contrary, immediate variable annuity offers a stream of payment that will be modified throughout the payout period. The rates of these payments vary because of the subaccounts the annuity is tied with. These subaccounts underlying in the annuity invest in some market stock s or bond stocks.  Because of this, the rate can go high or low. Nonetheless, if the market performance goes high, the rate of return high likely will increase too.

Immediate variable annuity is a type of annuity that immediately pays out an annuitant with rates flexible to fluctuations. This kind of annuity may guarantee a lifelong income. The lump sum of money paid as the principal amount is placed in a portfolio where distributions of assets from different market stocks can occur.

Immediate variable annuity is most of the time equity-based. Meaning, the rates of income return to be paid out are tied to financial markets. By that situation, either the rate of return could be lower or it could be higher depending on the performance of the market. However, this kind of annuity generally yields higher income because of its tax deferral.

The immediate annuity quotes of this one state a combination of two features that cannot be easily dismissed by prospective buyers. First, a guaranteed lifetime income could be offered depending on the circumstances. Second, income increase may be potential due to market progress. For retirees, these features could be ideal for their situation.

This kind of annuity could be a good option for you if you are a retiree that desires a larger package for your retirement that includes growth for your income. The immediate variable annuity will supplement your needs in a daily basis with a non-guaranteed rate of return. The risk of getting lower rate of return is greater here but the possibility of getting an income growth is also higher.

You should also know that in buying immediate annuity quotes there are charges and fees you have to address eventually. At least learn the basics of some of it, if not all of it, so that you will be properly guided.

Immediate variable annuity has its own strengths and drawbacks just like any other type of annuity. It can really work out for you if this is really what you need and want. However, if this is not really, what you desire, there are more options available for you. You can choose deferred annuities if you want tax deferrals in your income until the withdrawal time. Fixed annuities like immediate fixed annuity can also be a good option for you if you are afraid to lose capital and ensure the fixed rate of income no matter what happens to the market.