Immediate Annuity Plans and Their Necessity for Elderly People

by Admin ~ October 15th 2018

Everybody retires one day and the life after that may not be so easy if not planned properly. Annuity insurance plans are made to help people do the same. Insurance companies are offering different plans to satisfy specific requirements of applicants and immediate annuity plans are one of them. In this article, we are explaining the benefits, types of plans, monthly income and various other factors that will help to choose the most suitable retirement plan.

Immediate Annuity

As the name says, these plans are designed to help retired people with an immediate option to plan their retirement. Retirees can buy a plan after their retirement by paying a lump sum amount to the insurer and they will offer a guaranteed income every month to take care of their essential expenses. Also, employees approaching their retirement can buy cheap annuity insurance to ensure they spend their retirement peacefully.

What They Offer

Insurers provide the annuitants with a guaranteed monthly income to manage their daily life expense and spend a comfortable life after retirement. Annuitants have the option to choose a cover that they find sufficient to take care of their possible monthly expenses. In case someone isn’t able to find out the right coverage amount, there are online annuity experts to help interested buyers with the best pieces of advice depending on their requirements. Also, there are portals to provide annuity insurance quotes from different providers easily.

How Monthly Income Is Calculated?

The monthly income provided by insurers varies depending on various factors including the type of annuity as well as the age and gender of the applicant. A fixed annuity provides a certain monthly income to the annuitant while the variable one helps with a flexible amount depending on the markets performances. Also, the age of the applicant plays a role and younger ones are offered a bigger monthly income.

Types of Plans

Fixed Annuity: As it’s clear by name, annuitants pay their premiums till they reach 60 and the provider helps with a fixed income every month to manage their daily life expenses. Variable Annuity: A big portion of the premium is invested in markets and the monthly income depends on how those investments perform. Annuitants are provided with a share of the profits earned and help them save for unexpected expenses that may pop up out of sudden.

Are These Plans Made For You?

The relevance of these plans is very crucial for the applicants and they are supposed to take it seriously. Each plan isn’t made for everyone and hence might not be sufficient for their specific requirements. Immediate annuities are made for those who couldn’t buy a plan during their early employment years but will need a consistent source of income after their retirement. They can utilize their savings to ensure a guaranteed stream of income when they won’t be able to work anymore.

Cancellation Policy

Different plans come with different terms and conditions and same is with their cancellation policies. Usually, immediate annuity plans can’t be canceled after buying a plan. This means if someone has bought a plan and been receiving the monthly income for a while and later decides to withdraw, it’s very unlikely to happen. Most of them come with a no refund policy and the annuitant don’t receive any income after canceling a plan. However, one may find a refundable plan in their state, after doing some online research.

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