Principal, LifeNet Insurance Solutions, Redmond, WA
An annuity issued by a life insurance company is an income for life. That said, there are numerous ways that income can be taken. For example, immediate annuities as their name implies start when funds are deposited with the insurance company. Deferred annuities start at some future date, say on retirement for example.
Annuities can also be designed to last for one annuitant's lifetime at a fixed amount, or for a guaranteed number of years. These are just a few of the options that are available.
To learn about what's best for you, speak to an independent agent familiar with many carriers and their choices.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
That is an interesting question. I assume you ask because someone presented the idea to you. Annuities are a kind of insurance product and are sold / issued by life insurance companies. Annuities are either "life certain" or "period certain". If it is 'life certain' the annuity will pay out a specified amount per payment period for as long as the annuitant lives. If it is 'period certain' it will pay out for the length of the determined period regardless if the annuitant lives longer or dies before the period ends. If the annuitant dies before the period ends their beneficiary will receive the balance of the payments.
Another idea that could be expressed as a life insurance annuity is when the death benefit of a life insurance policy is set up to be annuitised to the beneficiary. That is the death benefit would be used to purchase an annuity for the beneficiary.
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Annuities can also be designed to last for one annuitant's lifetime at a fixed amount, or for a guaranteed number of years. These are just a few of the options that are available.
To learn about what's best for you, speak to an independent agent familiar with many carriers and their choices.
Another idea that could be expressed as a life insurance annuity is when the death benefit of a life insurance policy is set up to be annuitised to the beneficiary. That is the death benefit would be used to purchase an annuity for the beneficiary.