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Choose the Right Insurance Annuity Products For Your Retirement Plan

By Sachin Kumar Airan

While you may have found out some benefits of purchasing annuities to supplement your income at any point of time in your future or for any emergency needs, it is important that you educate yourself on the respective types and understand exactly what they can do for you. You can read on to get an overview while at the same to consult your insurance agent for more details. To have the right knowledge means power and with the right knowledge, it can only mean a guaranteed income for your retirement.

Annuities are suited for everyone at any point in their life but there are several types in the market that can either work for you or otherwise. Each option has its own particular cost that could manifest itself to reduce your total income at the very end. It is worth your while to know your options, get their appropriate quotes from several providers and make your comparisons before jumping in.

Choosing the right annuity that works for you is pretty much works around among others the interest rates, insurance company credit ratings, surrender charges and withdrawal penalties. All the different types will have to have these considerations in order to optimize your investment as much as possible. Here is a short brief on a few common types of annuities that are currently available in the market;

1. Fixed annuities offers you a series of fixed payment paid monthly, quarterly, bi-annually or annually over a specified period of contracted time or for your entire lifetime. It may include a death benefit that will guarantee a continuation of fixed payments to your beneficiary.

2. Variable annuities on the other hand offer greater flexibility than the other options. You are able to retain greater control over your investment which may see attractive returns during favorable market situations. In this option, the amount of payment varies according to performance of your selected investments options.

3. Guaranteed annuities ensure that payments are made continuously for a minimum length of time even if the investor dies before the period lapsed. If the investor dies before that time the payments are done to his beneficiary. However, if the investor survives past the contracted period, payments continue on.

4. The beauty of indexed annuities is that when the stock market performs favorably, you will get a fair share of the additional profits added into your portfolio. On the other hand, when the stock market does poorly, you are still assured of a minimum profit. Your principal investment is fully protected from loss while you are assured of a guaranteed gain.

5. If your lifestyle factors indicate that you may have a shorter life expectancy than the average person, the impaired life annuity plan is a possible consideration for a guaranteed income subject to medical underwriting.

In conclusion, choosing the right type of annuity that works for you not only guarantees you a peace of mind but also the comfort during your retirement that you can eagerly look forward to.

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