Annuities Provide Stream of Income and Peace of Mind

For individuals who find they are worrying more and more about their financial futures, annuities provide a great revenue stream for down the road.

While unknown to some individuals, many folks know the benefits that annuities can provide.

They include: An immediate lifetime annuity contract that can ensure an investor a set of guaranteed periodic payments; proving a good choice for those who want to stay away from losing part of their savings; allowing investments to grow tax free; support from state guarantee funds meaning the investments will not be loss if insurer is unable to pay.

Annuities offer investors a triple compounding experience, meaning they permit individuals to earn interest on their principal, interest on their interest, and interest on what investors would typically pay in taxes. Investors do not have to pay income taxes on annuity interest until they remove it from their annuity.

Among the other benefits with annuities is that the proceeds go straight to an individual’s beneficiaries without the delay, cost and publicity of probate in most states.

When individuals determine to begin receiving payments, they can typically select one of a number of methods.

Among the methods are: Lump Sum distribution (one-time payment), periodic distributions, (investors take money only when they need it), systematic distributions (a fixed or variable is sent to the investor at regular intervals), annuitization (fixed or variable payments guaranteed for rest of one’s life).

There are a number of different annuity options for investors. They include: Immediate annuity, deferred annuity, fixed annuity and variable annuity.

The immediate annuity allows investors to obtain income immediately for a set time period or for the remainder of their life.

With deferred annuities, the income invested keeps on growing and collecting. The income will grow and multiply on a tax-deferred basis, with investors’ only paying taxes at the time they begin to remove money.

When it comes to fixed annuities, investors receive a fixed monthly income from the time they decide to start receiving money. The rate of return or the money, which is tax deferred is pre-determined and will not change.

Finally, a variable annuity is where the individual invests money in stocks and bonds, and the income is subject to change monthly as a result of market fluctuations. The income is tax-deferred, and the annuitant can determine whether to receive it immediately or over a long-term basis.

When it comes to getting the annuity quotes you need, look no further than Insurelog.com.