Licensed Life Agent, Life and Finance/ 50 States, New York
Annuities are a stream of steady income payments during retirement. Money is contributed during the early years. Money is contributed compounded income and tax deferred, however the earnings are not.
Withdrawals are advised at the age beginning 59 1/2. You may agree to pay at lump sum one time payment or at a monthly premium.
The forms of payments for payout are Lifetime Income is which you are paid for a certain amount of years like 20, 30, or 40. and the benificiary is to receive the remainder upon death of the annuant.
Another form of pay out is Lifetime Pay Outs which are fixed or variable, and payouts are for he lifetime of the annuant until death.
Another form is Income for Life with a Guaranteed period Certain period which are payouts for life with a benificiary option of you die while this payout is in process.
It is important to note that the previous answer is specific to Immediate Annuities. More specifically Lifetime Immediate Annuities.
There is also another popular form of Annuity called a Deferred Annuity. These actually will grow your funds, usually at a set interest rate, until you decide to either move the funds or to take income from them. If you decide to take income from it, you may do so the same way as an Immediate Annuity. You can choose a Lifetime Payout, a Lifetime Payout with Beneficiary Options, or a payout for a specific number of years.
In short, an Annuity is a retirement savings tool that allows you to grow your money or to create an income stream from your money.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An annuity is an insurance product. A life insurance policy protects you from dying too soon. An annuity protects you from living too long. Annuities are complex. Basically, in exchange for a sum of money, either immediate or in installments, the company will pay the annuitant a specific amount, normally monthly, for the life of the annuitant. There are many modifications of this basic form. Annuities are taxed differently from other programs.
President, Lane Independent Agency, Southern California
Think of Annuities as a way to safeguard your money. You ask an insurance company to hold your money, pay you growth on it, and then pay it all back to you later or over time. Variable products go up and down with the market, but indexed products never go down, and go up at an amount reduced from true market, but are totally safe. Thank you. Gary Lane 714 422 9616.
.JPG){kind=avatar}
Withdrawals are advised at the age beginning 59 1/2. You may agree to pay at lump sum one time payment or at a monthly premium.
The forms of payments for payout are Lifetime Income is which you are paid for a certain amount of years like 20, 30, or 40. and the benificiary is to receive the remainder upon death of the annuant.
Another form of pay out is Lifetime Pay Outs which are fixed or variable, and payouts are for he lifetime of the annuant until death.
Another form is Income for Life with a Guaranteed period Certain period which are payouts for life with a benificiary option of you die while this payout is in process.
There is also another popular form of Annuity called a Deferred Annuity. These actually will grow your funds, usually at a set interest rate, until you decide to either move the funds or to take income from them. If you decide to take income from it, you may do so the same way as an Immediate Annuity. You can choose a Lifetime Payout, a Lifetime Payout with Beneficiary Options, or a payout for a specific number of years.
In short, an Annuity is a retirement savings tool that allows you to grow your money or to create an income stream from your money.