How Does Annuity Pension Work?

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    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Life insurance is designed to help your loved ones should you die too soon.  An annuity is designed to help you should you live too long, In exchange for a sum of money the insurance company guarantees payments to you for as long as you live.  In its simplest form, that means that if you live one month you get one month payment, if you live forty years you get 480 payments.  Since that arrangement isn’t best for everyone there are a variety of payouts that can be selected to protect two people or to make sure that everything invested is returned.
    Answered on August 4, 2014
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