Single Premium Annuities
To make sure things are truly simple a single premium is an easy concept to comprehend. It means you pay the insurance company one time and have a contract for life. You can either start receiving payments immediately or defer your income for a number of years in the future. Read More…
Split Annuity
A split annuity is a strategy and not an actual annuity. While a split annuity is a combination of two annuities, it by itself is not an annuity. That may sound like a bit of double speak until you understand its components. The first component is a single premium immediate annuity that pays the owner of the split annuity an immediate monthly income. This is the income portion of a split annuity.Read More…
Annuity Information
Annuities come in all sorts of shapes, sizes, types and classifications. Depending on where you have the assets invested when your payments begin, and method of premium payment, annuities have various benefits. For instance, fixed annuities assure a specified rate of interest for a certain period of time, while variable annuities offer a greater opportunity for growth, but then, the risk involved is also high. More Annuity Information…
Annuity Definition
Annuity definition, in relative terms, comes from the field of finance theory. Since all financial transactions are theoretical in nature until they actually happen this makes sense. Whether or not the transaction is profitable or successful is not part of this discussion. Read More…
Annuities Explained
Annuities are sometimes difficult to understand especially if you are not a finance oriented person. Hence, the simple explanation of annuities is that they are term deposits with insurance companies. The industry started with two types of annuities, fixed and variable then added an index annuity. The nice thing about all three types is they have a lot in common so it makes them easier to understand. Read More…
Immediate Fixed Annuity
An immediate fixed annuity has been called the classic annuity because a person begins to receive periodic checks after the first month of investment. Hence, immediate means it starts in a relatively short period of time and fixed means the check will be the same amount every time. Read More…
How Equity Indexed Annuities Work
An equity-indexed annuity is an annuity that is different from a traditional interest bearing annuity. An equity-indexed annuity earns its interest by being linked to a stock or other equity index. Read More…
An annuity is a popular product. In fact, there are trillions of dollars invested in various annuities. This is true throughout the world. Before you buy an annuity, you should know the different types. Fortunately there are only two. Read More…
Index annuities are a relatively new breed of annuities given they didn’t exist prior to the mid-90s. All annuities prior to this date were either fixed or variable. However, the genius behind the index annuity figured out how to make a very good investment even better. The inclusion of an index into the makeup of an annuity gives the annuity owner the opportunity to receive an increase in return on his investment. Read More…
Immediate Annuities
An immediate annuity is a financial contract between an insurance company and an annuity holder. As the name suggests, the annuity holder will receive payments from the insurance company soon after the signing of the contract. The payments almost always run for the life of the annuity holder.
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