Annuity Insurance is a life insurance policy that is structured to provide a series of continual payments to a beneficiary for a defined period of time. Annuity policies deliver stable income to allow you to realize your retirement dreams and control your future.
An annuity is a long-term investment that is designed to protect against the risk of outliving your income or the untimely death to the family breadwinner that would burden the family financially. Through annuitization, your premium payments are converted into periodic payments for a set period of time.
Annuities act as a safety net, usually for those in their senior years, by providing a guaranteed stream of income for life. When applying for an annuity, you are given the option to pay a lump sum or pay over time. You can choose if to take the continual payments immediately or defer to a later date depending on your current needs. With an annuity, you’re guaranteed a certain amount of payments every year until the annuity expires or you die. In addition to the guaranteed payment, the policy accrues interest. There are three primary types of interest rates for annuities:
An annuity is unlike a majority of life insurance contracts, and at first glance has polar opposite goals to typical life insurance policies. Usually, life insurance is designed to protect your family against financial burden in the event of an untimely death, however with an annuity, it is to act as a safeguard against retirement and longevity. At INLE Risk Management we will help you determine whether an annuity is the right option for you and your current needs.
With most life insurance policies, the policy pays out in the event of your demise, whereas with an annuity, the policy pays consistently during your life and expires on death or at a pre-determined given time – giving annuities a very different use than other life insurance.
Everyone hopes to live to an old age, but even longevity has its own risks – namely, outliving your money. An annuity is a solution to that risk, by providing steady cash flow well beyond your working years.
Additionally, an annuity is a solution to protecting wealth and ensuring it lasts for an individual’s lifetime. If you are concerned that the wealth you’ve earned may quickly be squandered, whether by yourself or a significant other, an annuity will allow you to stretch that sum of money for a steady and calculated period.
At INLE Risk Management we specialize in identifying, choosing or structuring the ideal and appropriate policy to suit your lifestyle and needs.
Other Life Insurance