Annuity Payouts Are You Informed About Your Options?

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Annuities offer many options for retirement income.

 

Annuity contracts offer numerous options to receive your accumulated funds as retirement income. Most of these options can be for a specific period and can provide you with income for your lifetime or your beneficiary’s lifetime. Understanding how these income options work and what available income can be derived from your annuity will allow you to blend your retirement income.

One option rarely used is the interest-only option. At any time, you can withdraw the earned interest every month. This allows for your account value to remain the same each month as you remove the monthly interest. As an example, if your account value was $100,000 and the interest paid was 5%, you could withdraw a monthly interest check of $416 without the invasion of the principal. The benefit of this option is deferring any permanent decision until a later period. The interest income option is cancellable at any time, so total control is maintained.

Another option is the life income refund option. This allows you to receive a monthly check for as long as you live, and in the event of premature death, the unused funds will be refunded to your beneficiary. However: if you live longer than life expectancy, the annuity will continue to pay, regardless of how long you live. The insurance company assumes full responsibility for your lifetime benefit.

A very popular income benefit is the joint and survivorship income benefit. This pays an income to both or a surviving spouse regardless of how long they live. This establishes an income that neither party can outlive. In the event of the death of both parties, a rider can be selected, so any remaining portion is refunded to a named beneficiary.

By using the contractual guarantees in an annuity, many options for income exist. These options can be customized to accomplish almost anything in almost any situation.

 

 

 

 

About syndicated columnists

Syndicated Columnists is a National organization committed to a fully transparent approach to money management. Providing original content aimed at the financial market, their articles are diverse, easy to understand, and targeted to the average reader. These columnists pool and share article information to provide the highest quality experience for their readers.

View The Best Annuity Rates Available Now

Annuities are a safe and reliable investment. They can transform your savings into a more predictable income. Speak with one of our qualified financial professionals today to find out how an annuity can offer you guaranteed monthly income for life.

Our unique system of “Pooled and Shared” articles by our authors, our outside contributors, and writing assistants provides efficiency, enhanced collaboration, and greater topic accessibility. This allows for a better utilization of content and productivity while delivering meaningful content to our readers.

Content in our posted articles is deemed to be accurate but topics, facts and laws can change. It is always a good idea to verify facts before making decisions. Always seek authorized and professional advice regarding financial decisions which includes investing, annuity purchases, tax planning, changes in a financial portfolio and retirement planning.

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