People often ask…
What Are The Benefits of An Annuity?
The answer is MANY, especially for retirees!
One of these key benefits is the option of a guaranteed lifetime income, given via a fixed index annuity (FIA) contract with an insurance company. First, you put money into the annuity. Simultaneously, you enter into an agreement with the insurance company. In this agreement, the insurance company states they will take that money and in return, provide you with a set income payment, over time. Usually, you receive your money at age 60 or later. However, if you wait longer to get your money, the income payments may be bigger. Also, remember, the principal value of your annuity is safe by the insurance company.
Income For Your Lifetime
Using a fixed index annuity (FIA), you can set up ongoing fixed income payments for yourself. For example, this might occur annually or monthly. Additionally, some annuities also have options and benefits that can help keep your income increasing with rising costs. For instance, an income rider may allow you to get increases in your payment amounts over time. This allows retirees to stay on top of rising medical costs, living expenses, or inflation
For clarification, income riders do have some restrictions. So, make sure you learn and understand all the details about benefits and costs. Devin Choules and his team are happy to go over this with you and help you make the right choice for yourself. We will answer all your questions, especially “what are the benefits of an annuity?”
Also, keep in mind that some withdrawal may affect taxes. For example, you may create additional tax liability if you try to withdraw retirement money prior to age 59 1/2. However, if you work with someone who knows the industry, you may learn strategies to avoid this.
When You Need It
With all the flexibility and options available with annuities, its no wonder people chose them in retirement. When the market crashes, the insurance company has the risk, not you. In addition, you can secure your retirement future with products such as an FIA. And, once you’ve passed on, your beneficiaries may be able to receive a death benefit without probate.
The Flexibility of An Annuity
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Benefits Beyond Your Life
After you pass away, FIA’s can give you the option to bequeath your annuity value. Certain types of annuities will even all a death benefit to your loved one. Even after income payments, your FIA may still offer this benefit. For example, you may want a policy that allows your spouse to get money monthly as an income source. Or, you may choose a lump sum payment. Indeed, an FIA is a good fit for more than just retirement income reasons.