Annuities
Annuities – what they are, how they work and how to choose the best type of Annuity
Found 143 Articles.
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What is a Joint and Survivor Annuity?
Simply put, an annuity is a long-term investment, issued by an insurance company, that is designed to prevent retirees from outliving their income. However, annuities can become complex because there are numerous special options available for an annuitant to add to his or her annuity contract. One such option is to make the annuity a […]
What is a Longevity Annuity?
An annuity is a contract between an individual and an annuity provider. Under the contract, the individual makes an initial investment in return for the guarantee that the provider will make monthly payments to the investor in the future. There are various types of annuities. This article is going to focus on longevity annuities and […]
What is a Non-Qualified Annuity?
Annuities are tax-deferred, meaning the money invested in the annuity grows without being taxed until the payout occurs. The annuitant does not pay taxes on the earnings while they remain in the annuity, but taxes must be paid when the money is withdrawn. The rate at which payouts are taxed depends on how an annuity […]
What is a Single Premium Deferred Annuity?
An annuitant who buys a single premium deferred annuity (SPDA) does so by making a cumulative payment and then waiting to receive payouts at a predetermined time in the future. The single premium deferred annuity allows the annuitant to build the value of the original lump sum payment by collecting interest payments each year. The […]
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What is a Single Premium Immediate Annuity?
A single premium immediate annuity (SPIA) is a contract between an insurance company and an annuity owner, also known as an annuitant. The annuitant makes a lump sum deposit, and the insurance company promises to make regular income payments to the annuitant. The payments usually begin shortly after the contract is entered into (often within […]
What is a Straight Life Annuity?
Under a straight life annuity contract, the annuity makes payouts on a regular basis for the remainder of the annuitant’s life, no matter how long the annuitant lives. The payments end when the annuitant passes away. Additional payments aren’t made to a beneficiary. The following is an example of a straight life annuity, which also […]
What is an Indexed Annuity?
An indexed annuity is a type of deferred annuity. It is a contract between an insurer and the annuity owner under which the account of the annuity owner is credited interest based on the performance of a named investment index or a combination of named investment indexes. Indexed annuities also have been called equity-indexed annuities […]
The Three Best Annuity Providers for Investors to Profit
When seeking to diversify an investment portfolio, financial services are an important area for investors to use for profit. There are many publicly traded financial services companies that each offer a myriad of services. This article will discuss three financial services companies, all of whom are leaders in the annuity business. Prudential: Predictable and Safe […]
