Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
An immediate annuity is an annuity where you give a single lump-sum payment and, in exchange, the insurance company pays a guaranteed income for a number of years (there are options to choose from - some can go for only a set number of years, others can go for life). The payments start immediately (typically the first month following the month the annuity is placed in force).
Immediate annuities are great for seniors who are concerned about outliving their life savings as it provides a guaranteed income.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
An immediate annuity is a contract where you pay the insurance company a lump sum of money and they guarantee to pay monthly benefits for the balance of your life. It is the most basic annuity. Life insurance addresses the risk of dying to soon. An immediate annuity addresses the risk of living too long. It is an essential part of retirement income planning.
That is a great question! There are two types of annuities - deferred and immediate. Deferred annuities take the initial deposit, and promise an interest rate for a certain number of years, and after the passage of a determined number of years, starts to pay out monthly. An immediate annuity takes your deposit, and very quickly starts to pay it back to you in monthly payments. Both types are designed to provide income for a determined amount of time. I hope that helps, if you would like more information, please contact me, okay? Thanks for asking!
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Immediate annuities are great for seniors who are concerned about outliving their life savings as it provides a guaranteed income.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.