Fixed Annuity Choices - Significant Considerations
Sunday, November 4th, 2007When it comes to fixed annuity choices you have two basic types to select from - the immediate annuity and the deferred annuity.
If you opt to enroll in a plan that offers an immediate annuity, you will receive a check from the company anytime within twelve months of signing on the dotted line. An immediate annuity also offers you the choice of receiving the check every year for a specific pre-determined number of years or whether you just want to keep receiving the checks every year for the duration of your entire lifetime. In the latter case the insurance company will figure out how much each payment will be based on how much insurance you bought in the first place and the length of your projected life expectancy.
A deferred annuity is a little more complicated. It is a two-step type plan. During the first phase of the plan, known as the accumulation plan, your money is invested and allowed to grow in bulk. Taxes on this investment are deferred until you should choose to withdraw the mone (more...)
