Deferred annuities are annuity contracts that delay payments of income, installments or a lump sum until the individual elects to receive them. Hence, the title deferred annuities. One of the many advantages of tax deferred annuities is the tax bracket you’re in when you start receiving the income payments. Read More…
Posts Tagged ‘tax deferred’
Fixed Annuities
Fixed annuities are insurance contracts in which the insurance company makes fixed dollar payments to the annuitant for the term of the contract. The annuitant is the person receiving the payment and the term is usually until the annuitant dies. Read More…
Annuities Pros And Cons
Given this is true what are the pros and cons of annuities? First, if a person is looking for a lifetime income, an immediate annuity contract is their ticket to that income. Immediate annuities guarantee periodic payments to the annuitant for as long as they live. Read More…
Bonus Annuities
Annuities have been a viable product since the 1600’s when they were created. In the ensuing 400 years, annuities have undergone a number of changes. The latest addition to the family of annuities is called a Bonus Annuity. As the name implies, this is an annuity that pays a bonus. Read More…
Income annuities are just that. Annuities providing the contract owner, commonly called annuitant, monthly income. As it turns out, income annuities are also called ‘single premium immediate annuities’, ‘immediate annuities’ or ‘payout annuities’. Read More…
Lifetime annuities have a very simple and easy to understand basic concept. By the way, lifetime annuities are also known as immediate annuities. So if you hear either term, you will know they are the same type of annuity. 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…
Variable annuities can offer a range of investment options. The value variable annuity can vary greatly depending on the performance of the investment options you chose. Typically there are three investment options available for variable annuities. Read more…
An annuity is a financial contract between a financial institution, which is almost always an insurance company, and an annuitant or as sometimes called, a buyer. The insurance company is referred to as an issuer. Payments into an annuity contract can be structured in two ways. The first is by a lump sum money purchase as it is called. The second method is called the periodic payment method. Read More…
FIXED INCOME ANNUITIES
The fixed income annuity is called a fixed income annuity because of the insurance company’s willingness to pay the annuitant a fixed income for a period of time based upon the value of the annuity. It is a contract, like all other annuity type contracts, between an annuitant, sometimes called an investor, and an insurance company. Read More…