It all comes down to understanding that there are several
different types of annuity products, each of which is designed to address a specific need or life stage.
There are different
types of annuities as discussed in our previous article talking about all things annuities.
Consider your financial needs and goals, as well as your tolerance of risk, to determine
which type of annuity better serves you.
Explore the options below to learn more about each of the most
common types of annuities and evaluate which type may suit your individual financial objectives.
Since 1952, there are now 15 different
types of annuities available, and the confusion and complexity of these numerous strategies contributes to the negative perception that the annuity industry has earned.
When people talk
about types of annuities, it mostly refers to the approach to calculating the growth of the cash in the account OR when the account will convert into an income stream.
It is important to understand that
certain types of annuity contracts may be deemed inappropriate for certain types of consumers.
Any product changes and enhancements or new launches will complement the company's annuity product families and not «pivot» from one
type of annuity at the expense of another, she said.
Rather than address risks associated with each
specific type of annuity, I'll be providing a more generalized summary of risks.
Explore the three
primary types of annuities, the optional benefits each may include, and which type may suit your investing and retirement goals.
The company offers several different
types of annuities so that clients may choose the one that will be best for their goals.
There are
multiple types of annuities and the exact payment structure will vary based on the terms that you agree to with the insurance company.
That is a very big deal if the
same type of annuity income rider at $ 500,000 had a 5 % payout rate.
As you hopefully know, there are
numerous types of annuities that are designed to address a specific risk or groups of risks that many retirees face.
The
second type of annuity that works well in such an arrangement is a deferred annuity, aka a longevity annuity.
Whatever type of annuity you choose, carefully review the fee structure to make sure you're getting more money out of the contract than you're putting in.
There are
various types of annuities that are uniquely suited to meet various types of income needs and these will be discussed in this article.
Explore the options below to learn more about each of the most
common types of annuities and evaluate which type may suit your individual financial objectives.
Use this chart to compare four
popular types of annuities that can help you generate guaranteed lifetime income or increase your tax - deferred savings for retirement.
This is a good
type of annuity plan as this ensures that the annuitant doesn't have to depend on anyone even after he retires and his regular income stops.
While many
types of annuities allow the annuity owner to name a beneficiary (usually a spouse) who will be eligible for either continued payments or death benefits, a straight life annuity forgoes this added benefit in favor of higher guaranteed payments while the annuitant is alive.
With the complex selection of options available, consumers can find it difficult to decide rationally on the right
type of annuity product for their circumstances.
The specifics of how annuities are taxed change based on
what type of annuity you buy and what type of annuitization option you select, as well as whether you purchase the contract with pre-tax or after - tax money.
When considering an annuity, the first question to discuss with a financial professional is which
type of annuity suits your priorities, your long - term financial goals, and your comfort with risk.