Annuity Consideration Explained

Contributions to an annuity might be a single payment or a series of payments. After consideration has been received, immediate annuities will start making payments to the recipient.

How Do Annuity Considerations Work?
Payments to an annuity account might be made monthly, annually, or semiannually, depending on the account holder's preference. Annuities can be arranged in a variety of ways, depending on a variety of factors. Payment factors include:

• The accumulated value of a preexisting deferred annuity
• Annuitants' minimum age to receive payments
• Duration of the annuity or the longevity of the annuitant
• Annuity payouts

What Are The Types of Annuities?
Fixed Annuities and Variable Annuities are the most common types of Annuities. Below are the details to know the difference between the types.

Fixed Annuities
A fixed annuity is the simplest type of annuity. The interest rate on a fixed annuity is guaranteed not to be lower than a certain percentage. When committing to the duration of your guarantee period, the insurance provider guarantees a fixed interest rate on your investment. That interest rate might be effective from a year through the end of your guarantee period.

Variable Annuities
A variable annuity is a sort of tax-deferred annuity contract that enables you to invest your money in several sub-accounts in addition to the annuity contract itself, which can guarantee a certain income for the rest of your life. Your sub-accounts have the potential to help you, over time, in keeping up with or even surpassing the rate of inflation.

Conclusion
No one should worry about outliving the money they've worked so hard to save. Annuities may provide that sense of income assurance. A financial adviser can help you decide which sort of annuity makes the most sense for you by taking a deeper look at your objectives and values.

At Medicare Supplement Store, we do our best to make sure our clients are well-protected with affordable and comprehensive policies. We will go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (732) 252-8828 or Click Here to request a free quote. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!