Post-retirement stage is full of financial worries which make the days of individuals miserable like hell. Therefore, to secure the life of retirees, several financial schemes have been introduced. Among various solutions that have been made available to the senior citizens, the most popular and convenient one is immediate annuities. The features of this scheme help the old individuals plan for a better tomorrow. Several companies exist to offer you excellent schemes, but before you make your choice, ensure that you know well the annuity quotes that each of them offer. Not only a company should be good at delivering its service, but even you should remain careful while making your decision to choose a particular source to avail the annuity facilities.
How Immediate Annuities Help?
With the help of the scheme of immediate annuities, an individual gets a chance to convert his money, saved for retirement into his regular income during his post-retirement stage. To enroll for these schemes, you need to sign an agreement with an insurance company. You need to provide a lump sum to the company, which is known as a premium, in return to which, it promises to provide you a steady income for lifetime or for a specific period of time, whichever you choose. Immediate annuities, however, are also known as income annuities because of the guaranteed earning they provide. No other investment alternative provides such a convenience to the individuals during their retirement phase.
What Are The Possible Payment Options?
As soon as you purchase immediate annuities with a lump sum, the company starts making regular payments. Assurance, protection and flexibility are the basic features which make these options, one of the ideal financial solutions for retirees. Pay the insurance company once and enjoy a regular income thereafter. Even in case of voluntary retirement, an individual can apply for the plans and avail their benefits without any complications. In case of immediate annuities, however, various payment options are available to the senior citizens, which they can easily choose from based on their suitability.
Some of these payout alternatives of immediate annuities have been mentioned below:
- Lifetime Income or income for certain period whichever is more. In case the annuitant dies before the period ends, the remaining payment would be transferred to a beneficiary.
- Income for life till the annuitant is alive.
- Income would continue for a certain period of time ranging from 5 to 50 years. If the annuitant dies, benefits get transferred to a beneficiary for the remaining period.
- Income for life with cash refund options. When the annuitant dies before the expiry of the scheme, the remaining part of the premium is received by a beneficiary.
- Life income with refunds through installments.
Based on the choice of the annuitant, the insurance company would offer him or her, a relevant deal.