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How Can You Secure Your Life with a Life Annuity

By Robert Jhonson Subscribe to RSS | March 27th 2012 | Views:
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Are you on the verge of your retirement? Are you too much worried about that? Since you are already into a job, it’s quite obvious that you will retire one day. You need not feel that you are going to be doomed after your retirement. You lead a prosperous life now and even after your retirement you can maintain it. Life annuity is a kind of retirement income given to the individuals by the insurance companies. Annuities are nothing but investment contracts to pay money to the retirees at regular intervals. Such type of investment scheme is tax deferred. Until and unless you withdraw the funds, taxes are not charged on the money that is accumulating.

So if you want to own a house or a brand new car, you can go ahead with your dream and fulfill it. It is only possible through the income from annuities.

What are the types of life annuities?

Straight life annuity – this annuity is very easy to understand and it secures your life after retirement as you earn a lot of money from this annuity. Initially, when the payment is being made, you receive some predetermined payments till you pass away. These are monthly payments which are of immense help. The advantage of this kind of annuity is that it is less expensive than any other kind since it is very simple and straight forward.

Health annuity – this is another kind of life annuity. People who have some severe health problems opt for this kind of annuity. This annuity is very expensive as it involves a lot of risk and it depends on the insurance company which is issuing the annuity. However, the annuitant receives a great amount of money as he or she is going to live for a short period of time.

Joint life annuity – in this case when the annuitant passes away, the spouse gets the benefits. It is very advantageous to the person who is getting the income. The money is distributed over a time period and not at a single payment. Since this life annuity is very complex you need to pay higher costs.

Fixed annuities are payable for the whole life and the insurance company guarantees the rate of interest. For a certain monthly payment, fixed annuities are taken into consideration. Such annuities are either given on a large scale or you can earn multiple deposits and get benefitted.

Robert Jhonson - About Author:
Robert Jhonson is a Financial consultant who has good information on life annuity and fixed annuities. For more information, he recommends you to visit http://www.totalreturnannuities.com.

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