Frequently Asked Questions
What is an annuity?
Annuity is a tax-favored investment option offered primarily by insurance companies, which provides one with a regular stream of income (may be fixed or variable amounts) during the retirement years. It is possible to select payment options wherein beneficiaries can receive payments accordingly.
Why should I consider purchasing annuities?
Annuities offer comprehensive financial protection during your retirement years. You are offered a variety of payout options based on your individual needs. Here are few top reasons why you should consider purchasing annuities -
- Annuities provide you with a wide array of investment options
- It is also possible to make tax-free transfers among investment options
- You receive tax deferral on investment earnings
- Provides you with lifetime income protection
- Offer protection from creditors
- Benefits are available to your heirs
What are the different types of annuities?
Annuities may be classified into several broad categories as follows –
- Fixed or variable annuities – based on nature of the primary investment
- Accumulation or pay-out annuities – based on the primary purpose of the annuity
- Fixed period, fixed amount or lifetime annuities – based on the nature of pay-out commitment
- Qualified or nonqualified annuities – based on the tax status
- Single premium or flexible premium annuities – based on premium payment
These are just the broad classification. It is possible to purchase an annuity that falls into several of these categories, like for example you can buy a flexible premium nonqualified fixed annuity. For more pertinent information you can check out our advice & articles page.
What is a fixed and variable annuity?
A fixed annuity pays you a fixed rate of return. The monthly payment amounts are a set predetermined amount and are guaranteed throughout. In a variable annuity you are offered a wider choice of investments such as stocks and bonds. In this type of annuity you are not guaranteed a fixed rate of return. The amounts you receive will vary based on stock market performances or on the funds which you select.
Is a fixed or variable annuity best for my situation?
What type of annuity is best for you varies based on a number of factors that is unique to your specific situation and requirements. If you are a conservative investor looking for safety and stability then a fixed annuity may be the right option. However, if you are comfortable with fluctuations and want to keep in track with the current inflation levels and benefit over long periods then a variable annuity may be the right choice. Generally those nearing retirement opt for a fixed annuity whereas younger people are looking to variable annuity to reap gains in the stock or bond market over long term.
Do all annuities pay the same level of income?
Certainly not. Income from annuity will vary based on the terms and rates offered by your provider. That is why it is important that you compare quotes from leading providers and then choose one that offers you maximum benefits.
How to purchase annuity?
You can purchase annuities through insurance companies who are licensed by your state insurance department, banks or brokerage firms. However, it is important to compare annuity rates prior to entering into a contract. If you are considering purchasing annuity via a reliable provider then we can help you. Spare a few seconds to fill out our simple secure form. Our professionals will study your needs and will get you the best annuity rates available today.
How much will the services cost me?
Absolutely nothing! We strive to find the best annuity deal for our clients based on their individual situation and requirements. We do not charge for any of the services provided. Our services are completely free-of-cost. There is no Hidden Costs of any kind.
Is it safe to submit my personal details?
Completely! We guarantee absolutely security and confidentiality for your personal details. We respect your privacy and spare no efforts to protect it. We do not sell or exchange your personal details with other companies or third parties and will not involve in any kind of spam activities. Read our privacy policy for more details.
How long will it take to get annuity quotes? Are any obligations attached?
We will get to you with best customized offers within twenty-four hours of submitting our simple hassle-free form. Also, there is no obligation to accept any of our offers unless you are completely satisfied.
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