Financial planning can be complicated. There are so many different options available and it’s important that you understand them so that you can select the ones that work well for you. If you’re interested in learning more about annuities, then keep reading to learn more about two options.
Understanding Annuities
Annuities are a way to financially plan for the future. First, an individual gives the insurance company a large sum of money. The insurance company will then give the individual a certain amount of money every month, which they can use to live off of. One of the differences between different annuities is when the insurance company will begin releasing sums to the individual.
Annuities are a great way to make financial preparations for the future. It can provide you with great peace of mind to know that you’ll have steady income so that you can be sure you’ll be taken care of. This is one of the many reasons why individuals decide that annuities are right for them. Interested in learning more? Give us a call!
The Difference Between Immediate and Deferred Annuities
If you’re considering an annuity, then it’s important that you understand the different types. The main difference between immediate and deferred annuities is that the individual will begin receiving money at once when they choose an immediate policy. On the other hand, a period of time will need to pass before the individual begins receiving money.
Which type of annuity you choose will depend on your current financial situation and goals. If you’re planning for the future, then it might be best for you to choose a deferred annuity. A deferred annuity lets you invest money over months or years and then after having the deferred annuity for at least a year, you can begin requesting payments.
However, if you’re going to need to receive payments right away, then an immediate annuity would be the best option for you. Immediate annuities are one of the most basic types of annuities that allows you to make a lump-sum contribution that can be converted into an ongoing stream of income.
Making sure that you choose the right type of annuity is important, as it could have financial ramifications in the future. If you’re feeling unsure about which option is the right choice for you, then consider working with an insurance professional that can provide you with some further information.
Learning About Your Annuity Options
At Secure Insurance Group, we understand that financial decisions can be overwhelming. If you’re ready to work with a professional to understand all of your different annuity options, then we’re here to help. We hope to hear from you soon so that we can begin helping you make the right financial decisions.
