Nevada Annuities

Lifetime Annuities: Receive Money for Life

Lifetime Annuities

Lifetime annuities have a very simple and easy to understand basic concept. You’ll want to keep in mind, lifetime annuities are also known as immediate annuities. So if you hear either term, you will know they are the same type of annuity.

The essence, or concept, of a lifetime annuity is that the investor hands over a lump sum amount of money to an insurance company in exchange for a guaranteed payout for life.

This lump sum guarantees a pre-determined monthly income for as long as the owner lives. If the owner lives for a long time after purchasing an annuity, the odds say the owner will come out ahead financially.

Another way to look at it is that a lifetime annuity is an insurance policy against a person exceeding their income for their life expectancy. In this day and age, a person exceeding his or her life expectancy is a reality. Given life expectancies are in fact increasing, lifetime annuities are becoming more and more necessary.

They also raise the distinct possibility of collecting more than the combination of the original principal and paid interest. A lifetime annuity is the vehicle that will insure a person won’t outlive their income and in some cases the annuitant can even end up getting more than they had originally invested.

Some people have what are called term annuities. They differ from “lifetime” annuities in that term annuities pay a regular amount but for only a specified period of time. That term will vary by what you chose as a receiving period.

On the other hand, lifetime annuities keep paying as long as you live as explained above. This is an important distinction and should be taken into consideration when looking at annuities.

Many financial advisors agree that lifetime annuities are one of the safest retirement planning instruments on the market. They agree because most annuities protect against loss through various riders that are available for adding to the base annuity.

Probably the most important feature of lifetime annuities is the guarantee that you always will get a monthly check. All you have to do is be alive and the check will be in your mailbox or bank account.

This happens because you had the foresight to put up a single lump-sum investment today to guarantee yourself an income you can never outlive. No matter what your age, you will always need money to meet your life’s expenses. Lifetime annuities reliably meet that need for you.