Annuity and You
Annuity are a plan that is often either misunderstood or not understood at all.
Annuities are a vehicle that can provide a fixed income stream for a lifetime or a certain period of time. Think of annuities as a way of investing in insurance products where you put lumpsum of money in and you draw monthly payments from that investment.
Annuities, when invested into wisely are financial products that offer (guaranteed) income stream, usually for retirees who are past their prime earning years.
Annuities are a way to make sure that your retirement is well funded and paid for.
Factors That You Need To Consider
There are several things one must consider when shopping for annuity plans:
- Your health history
- Your current age
- Longevity of the annuity provider
- Projecting the cost of living in future
- One of the biggest expense in this phase of life are the medical expenses
Good To Know...
Life insurance and Annuities both allow individuals to invest on a tax-deferred basis. Do consult with your tax professional to make sure that you are planning this the right way.