subject: Fixed Annuity Ensures A Hardcore Guarantee Of A Secured Retired Life [print this page] Retirement is one of the biggest concerns in every individual's life. As far as the term goes, retirement is the period of a carefree indolent life. After years of unlimited toil, one always prefers relaxation and full freedom from work pressures and other tensions. Although retirement fetches you these benefits, it gives a big pause to your monthly income. While working, you always try to earn as much as you can but once you take a permanent break, your accumulated cash starts dipping and consequently the bank accounts acquire a low credit score. Therefore, its crucial for you to go for retirement schemes. Currently, if there is anything that can ensure steady income for retirees, its none other than a fixed annuity.
Fixed annuity is simply an investment contract that is drawn between the applicant and the concerned insurance company. Once the agreement is drawn, the insurance company readily agrees to pay the applicant a regular monthly payment for a restricted time period against the money invested in the annuity. Owing to this factor, a fixed annuity is also known as fixed income annuities. For the last few years, plenty of retirees have been opting fixed annuities. However, there are various schemes to opt for. For instance, there are policies that provide you payments till a set time period while there are some that is completely based on the life span of the individual.
Investors often misunderstand the concept of annuities. Many people have the misconception that annuities are absolutely uncertain. In fact, many retirees are unaware of the working process of an annuity. If you wish to go for it, you must initially have a firm understanding of how annuities work in actuality. Before you commit to any of the annuity plans, its important for you to talk to professionals and get to know the pros and cons of a fixed annuity and other policies as well.
The working process of annuities simply depends on the type of schemes you are applying. A fixed annuity is divided into two types Deferred and Immediate. Immediate annuities are processed in a straight and simple manner. Here, if you are opting for monthly payment, your first payment kicks off a month later from the signing of the contract. However, in case of yearly payouts, you will be start paying just from the initial month of the purchase date of the contract. On the other hand, deferred annuity sets the condition to purchase a fixed annuity over a certain period longer than just one single payment.
One of the perfect ways in estimating your income after retirement is to select the correct annuity quotes. To get quotes, you need to conduct a thorough research on various sorts of annuities as well as other options. For example, annuitants having poor health should not go for conventional annuity quotes and instead opt for enhanced annuity. If you are married, its always better to choose joint life annuity quotes and not the single life ones. To know more on fixed annuity, you can also contact an expert via online.
by: Blan Gould
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