Annuities                                                                                                                     

Annuities are insurance products, where-in you can invest a lumpsum amount, and in turn the insurance company pays you monthly payments for the rest of your life. These payments are gaurenteed by the insurance company and will never runout, as long as the insurance company is solvent. Annuities are available as level payments and increasing payments.

Level payments:

The level payment options pay you constant amount and will not increase over time. As a result the payments may end up as being inadequate during the later years of your life due to cost of living increase (you may have to continue to save).

Increasing payments:

In the increasing payments option, the payments are increased upto 3% (depending on insurance company, you choose) with change in consumer price index.

Annuities come in several optional forms of payment:

This annuity is paid to you until your life, and the payments stop afterwards.

This annuity is paid to you until your life, additionally, if you die before receiving enough payments equal to the amount of the account balance used to purchase the annuity, your designated beneficiary will receive a cash refund equal to the difference between the sum of the payments made and the annuity purchase price.

This annuity is paid to you until your life, additionally, if you die within 10 years of the start of your annuity, your beneficiary will receive the payments for the remaining portion of the 10-year period.

This annuity is paid to you or to your spouse for your lifetime. The monthly payments will be reduced by 50% to you or your joint annuitant when either one of you die.

This annuity is paid to you or to your spouse for your lifetime. The monthly payments will be reduced by 50% to you or your joint annuitant when either one of you die. Additionally, if you(and your joint annuitant) die before receiving enough payments equal to the amount of the account balance used to purchase the annuity, your designated beneficiary will receive a cash refund equal to the difference between the sum of the payments made and the annuity purchase price.

This annuity is paid to you or to your spouse for your lifetime. The monthly payments will be reduced by 100% to you or your joint annuitant when either one of you die.

This annuity is paid to you or to your spouse for your lifetime. The monthly payments will be reduced by 100% to you or your joint annuitant when either one of you die. Additionally, if you(and your joint annuitant) die before receiving enough payments equal to the amount of the account balance used to purchase the annuity, your designated beneficiary will receive a cash refund equal to the difference between the sum of the payments made and the annuity purchase price.






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