Top 4 Annuity Insurance And Their Benefits

by Admin ~ December 24th 2018

Living a comfortable retirement life is the dream of many and they try hard to make it possible. Annuity insurance plans are giving them new hopes to realize their dream of financial independence during the later years of their lives. The competitive environment between providers is helping interested buyers to receive a plan at cheaper premiums as well as enjoy more benefits for the same price. However, buyers have a tough time choosing the most suitable plan for them and in this blog, we will talk about the various plans available and their different benefits.

Fixed Deferred Annuity

These plans are made to help people with a fixed income every month after retirement and help taking care of their lifestyle expenses. These plans are great for planning their retirement during employment and receive a stream of income later. Under these plans, the policyholder has to pay a fixed premium every month and the insurer provides a guaranteed monthly income after retirement. Different providers are offering annuity insurance quotes to attract more buyers and interested people can make the most of that. Retirees know the amount they will receive every month and can plan their expenses accordingly for a more organized life.

Variable Deferred Annuity

The offered plans are designed for people who want to receive an increased monthly income after retirement. Under these plans, a fixed amount is invested in bonds and rest in the markets. The value of this investment may vary depending on market fluctuation and the insured receives a share in the profits if the investment performs strong. Also, the money gets accumulated over the years and the insured received a good interest on the same. This increased income helps greatly to plan their monthly expenses and save an amount for emergency purposes. These plans are great for those who have a good knowledge of markets and can bear with the market fluctuations.

Equity-Indexed Annuity

Another type of plan offered is equity indexed which is a little similar to the fixed annuity plan. Under these plans, there are two main components: a minimum assured return and a profit based return. For the minimum assured return, a bigger portion of the premium is invested in safe financial products and rest amount is invested in profit-making products. Depending on the market performances, a variable income is provided to the insured every month. They can utilize the assured income of lifestyle expenses and save the variable income for unexpected expenses that might show up anytime.

Longevity Annuity

These are the annuity plans offered on the basis of life expectancy which means a younger buyer will receive cheap annuity insurance in comparison to an older annuity buyer. For instance, if you are buying longevity insurance at 60, you will have to pay an increased premium amount rather than if you choose to buy at 40 years. Also, people who are diagnosed with a serious are not expected to live long and hence offered an expensive plan. Moreover, there are various online insurance portals where interested people can get to know the benefits and price of plans offered by different providers. Depending on their specific requirements, they can choose a cheap annuity plan by comparing the topmost plans.

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