Insurance Annuities may seem to be a complex subject for most retirees, but they are in fact a good financial tool if used correctly. Caught somewhere between an investment and an insurance policy they can be very beneficial to those who are currently looking to invest their money in a way that will benefit them as well as guarantee a return payment back to them for the rest of their lives. Annuities are basically the exact opposite of life insurance policies.
Make sense of annuities. Once a retiree decides to invest their nest egg in an annuity, they will simply need to decide how much they want to invest. The amount that is initially invested will ultimately tell how much their return payout will be once they do retire. Typically most people do not invest 100% of their retirement funds into an annuity. The return payments can be received monthly, quarterly, semi-annually or even annually. Many retired couples are now turning to this type of investment because women tend to live longer than men do by at least five years, so this could be a good option for securing their future.
There are many different options. For those who are considering Life Insurance Palm Beach Gardens FL they should thoroughly research the different options that are currently available to them. There are many different types of annuities and insurance options that can be used that will depend on the individual needs of each customer. The most commonly used are the following:
- Deferred Annuity is used if the investor decides they want their money invested for a certain amount of time. They usually start their return payments after they retire.
- Immediate Annuity starts making return payments immediately after the investor opens their account.
Most annuities will provide a steady stream of income and can be made either variable or fixed.
- Variable payments will depend on if the investment was made on multiple investments and will obviously vary.
- Fixed guarantees a fixed interest rate and is tax deferred.
Those who are potentially interested in acquiring Life Insurance Palm Beach Gardens FL should speak with a qualified professional at Ackerman Insurance Services Inc. to find out specific details. They are experienced in assisting customers decide if this is a benefit that will ultimately work with their individual retirement needs.
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