Not all fixed annuities suit the needs of every individual. Annuities are flexible in ways, which try to cater different individual’s needs and situations.
There are a number of fixed annuities present for you to choose. In choosing one, there are many factors to be considered such as the financial status of the prospective annuitant at that time and health conditions.
Annuities serve one main goal and purpose. It is to provide income after the retirement or even after the retirement date. Different kinds of annuities are available in the market. Choices can be made between deferred and immediate annuities. Under those two, a selection between fixed and variable is still needed.
If you are a retiree or soon to be retiree, an annuity may be one of your best choice. No matter what annuity you like, it is better to have an annuity than no annuity at all. Still, selecting one is crucial. In choosing the right annuity for you, you have to consider first your financial status as of the moment. Do you need a monthly income? Alternatively, you have sufficient amount of income in the moment and that you do not need your income right now?
First scenario, you need a consistent monthly income. What you need is an immediate annuity. Well, your annuity can either be fixed or variable depending on your choice. Immediate annuity will allow you to receive monthly income consistently.
Second scenario, you do not need the money today and you need to keep it safe for the future. What you need now is deferred annuity. You may save your income at a tax-deferred situation. You will receive payments right after your retirement. You can also decide between fixed and variable.
Fixed annuities offer you a minimum interest rate of your account. Whatever happens to the market or to the investments, the interest rate of your account may not be affected. Variable annuities, on the other hand, will offer your account a sense of flexibility. The interest rate will be subject to fluctuations brought by the market and the investments performances. Now, if you happen to choose fixed annuities, you still need to ponder on some factors.
Deferred fixed annuities and immediate fixed annuities can offer you various and specific types of annuities. Life annuities and term annuities are greatly known in the market. Life annuities give a person a fixed amount of money in a period. These kind of annuities expires when the annuitant die. Term annuities, in contrast with life annuities, do not rely on the life span of the annuitant. It will pay off predetermined amount to the annuitant periodically until the annuity products terminate.
There are several examples of life annuities and term annuities. If you do not have a family or a beneficiary and all you are concerned of is the flow of income after your retirement, then straight life annuity is the right one for you. It is simple and at the same time inexpensive. It will expire the moment after your death. On the other hand, if you have a spouse or children to worry about, you may optionally choose the joint and survivor annuity. This annuity will continue to pay an amount to your spouse even if you die. In case you have serious health problems, there is an annuity just right for you. Here, the money you need to pay to the company depends on your life expectancy. The lower it is, the higher you need to recompense.
Assess yourself, you needs, and your wants now. After that, enter your zip at the top of this page and choose the right annuity for you.