Immediate Annuity: Turn Your Assets Into Regular Payments
Insurance companies offer immediate annuity products which are designed to provide you with a life income stream.
An annuity is a contract signed between you and an issuer. According to it you give the issuer principal and in return the issuer guarantees you variable or fixed payments. Still, annuities aren’t insurance policies, but are issued by insurance companies.
An annuity is akin to a retirement plan. But there is a difference: immediate annuities have no limit in how much you can invest.
Immediate annuity can help you turn your assets into regular payments, starting now and for the rest of your life. At retirement, you will be able to use distributions from defined contribution plans and create your personal pension.
Immediate annuities are considered to be single-payment annuities. They aren’t meant to offer growth potential or liquidity.
Immediate annuities have the following features: regular payments, tax benefits, no withdrawals, postponement of taxes, and distribution options.
With an immediate annuity, the investor starts to receive payments at once upon investing. This is for those investors who want to get income from their annuity at once. Whereas, for example, in a deferred annuity, the investor usually gets payments at retirement.
So, make use of immediate annuity and have your lifetime income guaranteed, without having to fret about your future.
Photo: © AliMul
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