Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Secure a Guaranteed Investment with Annuities

By Robertcook Subscribe to RSS | April 6th 2012 | Views:
loading
 
  



Looking for financial security? Well then, annuities come up to be the best answer for you. Historically considered to be one of the safest investment plans, these are known to reap prospective return benefits for the individual always. These financial schemes usually come with a guaranteed rate of interest that secures the investors even, during market dropdowns.

Usually, multiple plans are available under the financial scheme that can prove to be advantageous for you catering to your specific needs. However, if you are looking for something that would offer you beneficial returns during the post retirement period then, deferred annuity is the chosen one for you.

Deferred Annuity Explained

In simple terms, this is a simple plan that allows the annuitant to draw a specific interest during the period between investing a lump sum and end of the term. This span is known as term period and the annuitant starts obtaining the payments at the end of the term.

The principal account under this scheme is referred as the accumulation account. Usually, the insurance company focuses on creating a completely separate account for the policyholder. This particular account continues to grow at a specific rate without any discontinuity, provided you abide by the rules of the contract.

Following your decision of turning on the income, the amount you are entitled to receive will be dependent on various aspects of your contract like, your age, requirements, the invested amount, the choice of annuity payout, and the term period of keeping your funds in deferral. However, if you wish to just take the principal amount following the end of the term then, you will not be getting the amount in the policyholder account. All you will be getting is the accumulated amount without the applicable charges of surrendering the same.

Why go for the Deferred Scheme?

If you might ask why invest with a deferred annuity plan then, the reasons favoring your choice are multiple. This particular financial scheme guarantees a fairly secured growth of your investment since, the principal amount is guaranteed via a contract by the insurance company selling the scheme.

Well, it is to be noted that if you depend on other choices, the threat if potential risk remains. Supposedly, you choose the income for life option and dies immediately after purchasing the annuity then, the policy would close down without offering any payments to your dependents or spouse. Similarly, with a continuous increasing in annuity rate, your financial scheme may also receive the same fate.

Robertcook - About Author:
Robert Cook is a Financial consultant who has good information on annuity rate. For more information on deferred annuity, he recommends you to visit www.immediateannuities.com/.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/investing-articles/secure-a-guaranteed-investment-with-annuities.htm

Related Investing Articles Subscribe to RSS

Get assured income with the income annuity
Published by Robert Jhonson on March 27th 2012 | Finance
The income annuity is considered to be a great investment while you are employed. It provides you wi...
 
Proper information about annuity quotes and annuity calculator
Published by Robert Jhonson on March 27th 2012 | Finance
Information about the various annuity quotes and the usage of the annuity calculator can help you ta...
 
Where can I get the best rate credit cards - at the bank or online?
Published by Jesse Wallace on June 6th 2012 | Finance

Applying for a credit card online can sometimes offer better rates than in high street banks....
 
Effective particles behind Currency rate Variations
Published by Vijaya Singh on January 20th 2012 | Investing
Currency exchange rate is highly dependent on export and import, surplus and deficit, macroeconomic ...
 
What is the right age for investing in an annuity?
Published by Robertcook on March 1st 2012 | Investing
When you plan to invest in an annuity scheme, age is one of the most important considerable factors....
 
Why choose fixed rate bonds?
Published by Sean Burke on May 1st 2012 | Finance
How fixed rate bonds compare to other fixed rate savings.
...
 
How to Differentiate Fixed- and Adjustable-rate Mortgages
Published by Randy Robinson on April 13th 2012 | Finance
Few people would prefer to pay fixed expenses for years. This is true especially when costs were hig...
 
Effective particles behind Currency rate Variations
Published by Vijaya Singh on January 20th 2012 | Investing
Currency exchange rate is highly dependent on export and import, surplus and deficit, macroeconomic ...
 
Plan for a peaceful retired life with retirement annuity
Published by Robertcook on April 6th 2012 | Investing
If you wish to have a peaceful and tension free retired life, start to plan early while you are stil...
 
Reasons to consider a fixed rate cash ISA
Published by Sean Burke on May 2nd 2012 | Finance
Enjoy tax free savings and financial security with a fixed rate cash ISA....
 
Why is it best to opt for fixed annuity and the deferred annuity
Published by Robert Jhonson on March 20th 2012 | Finance
The annuity is the best investment that you can possibly make while you are still employed....