All You Must Know About Annuities Or Annuity

By Author: Robert Cook
Total Articles: 111
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Annuities can be defined as an insurance in which one receives a certain amount of financial support for a certain period. If you want to invest in Annuity it is very important to gather all relevant information about it before investing. It is also important to know how it works and which type of annuity is most suitable for you.

When you invest in Annuities you will have to pay a certain amount of money either in lump sum or in regular periodic installments for a specified time period. Once the Annuity matures the insured investor will receive a certain amount of money in return. You can receive your returns annually, half yearly, quarterly or monthly all through your life or for a limited time. Annuities provide many benefits to the investors who invest in it. They serve as an additional source of income post retirement because the pension that is received by the people is so less that it is not able to meet their expenses. Thus, Annuity provides periodic payments to its investors even when they do not have any job. Another important benefit is that taxes are deferred with Annuities. This means that taxes ...
... are not applicable until you withdraw the amount of money. Thus, it is a really wise decision to invest in Annuity.

There are many kinds of Annuities depending on annuity variations, terms of payment of returns, the amount of money earned by you annually and terms of your premium payment. In Annuity you can pay your premiums either in lump sum or in regular small payments over a specified period of time. There can be either fixed or variable Annuities. In fixed annuities you will be provided guaranteed returns annually and on the other hand variable annuities you return depend on the earnings made by your Annuity. There is no guaranteed return in variable annuities.

Depending on the terms of payments of returns there are two Annuities options for you to choose, they are term annuity or life annuity. In term annuity you will get guaranteed payments on a regular basis for a specified period of time as agreed upon and if you die during the payment period then the remaining returns will be received by your beneficiaries. In life annuity you will receive guaranteed payments all through your life and the payment will be stopped after your death. Thus, Annuity is really beneficial but it is important to choose the type that suits you the best.