Nevada Annuities

Learn About Flexible Premium Annuities

Information on Flexible Premium Annuities

The true definition of a flexible premium annuity, also known as an FPA, is one with no fixed schedule for payment of premiums. Premiums can be paid for any number of months in a row, then not paid for the next so many months, then paid every other month, etc.

The other side of that proverbial coin you ask? There is no set amount required to be paid into the annuity in any given year. However, each contract has both minimum and maximum amounts allowed when making deposits.

These required minimum and maximum deposits depend on the company issuing the annuity contract and the type of annuity contract

This means in some cases you’ll find that the minimum monthly payment can be something as low as $50.00 or even $25.00 while the maximum monthly payment can be as much as up to four or five figures.

There are also tax codes you will want to adhere to when it comes to premium deposits. Always make sure to consult a competent professional in regards to tax repercussions.

Flexible premium annuities are almost always set up as deferred annuities. The idea underlying this type of annuity is rather basic.

The individual who is paying into the flexible premium contract will not begin to receive payment from the deposits made until many years in the future.

People select this type of annuity because the payments are easy to make, there is flexibility in the amount they can pay into the contract and the person can decide to schedule payments according to their time frame.

Upon death, the annuity value of your flexible premium deferred annuity will be paid directly to your beneficiary which avoids the expenses, delays and frustrations of probate.

Flexible premium annuities are not for everyone. However, as a person starts expanding their investment horizon, flexible premium annuities become a very real consideration.

In flexible payment annuity, premiums may be flexible, both in terms of amount and frequency. The system can accommodate user specified premium options concerning minimum amounts, maximum amounts, scheduled premiums, and target premiums.

A flexible premium annuity, depending on the situation, allows a person greater control and flexibility in both the amount invested and the time frame in which to invest the dollars. Flexible premium annuities as stated above are not a universal product by any means.

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