HomeIf you're worried about staying financially afloat as you near retirement, make it your goal to invest in an annuity to offset a fixed income-less future. Purchased through life insurance companies, annuities allow their holders to secure funds for later in life which, if a pension plan turns out to be a dud, can turn out to be your wisest investment.
Annuities come in all different shapes and sizes with each offering its consumers different advantages and disadvantages. The two basic types of annuities are:
- Immediate. You begin receiving an income from your immediate annuity the moment it is issued. You can also decide how long you wish to receive the benefits.
- Deferred. This type of annuity is geared toward retirement funds because it is a long term investment that allows you to pay into it over a course of however many years and then receive payment at a predetermined date.
Both types of annuities are available in fixed or variable form. The most conservative form, fixed comes with little possibility for loss. A variable form, on the other hand, is the riskier form of the two because of the increased chances of loss.
Live Comfortably with an Annuity
Investing in an annuity is no easy task and should be taken seriously. With some guidance and planning, however, you could benefit greatly from choosing the right annuity. Talk with your life insurance agent about which annuity type and form is right for you and start planning for the future.
InsuranceAgents.com provides annuity quotes from up to five life insurance agents in your local area.
Staff contribution: Rafael Onak
