fixed annuities

Practical people throughout the United States are buying fixed annuities everyday. Considered by many the conservative choice for conservative people, purchasing a fixed annuity means that you will receive a certain amount of money for a fixed period. So if you invest money into an annuity now, you will be paid that money back with interest in the future.

These type of annuities are said provide their owners with peace of mind, tax-deferred accumulation and flexible pay out options. Here are a few that you may or may not be able to choose from, depending on the company.

• Fixed Period: You may elect to receive your annuity sum over a fixed period (usually between 5 and 30 years). If you die before this fixed period ends, then the remaining monies go to your beneficiary. However, if you live beyond this period, no more money for you are your beneficiaries.
• Life Only: You may elect to receive a fixed sum for the remainder of your life. But when you die, no money is passed on to your beneficiaries.
• Life with Fixed Period: You may elect to receive a fixed sum for the rest of your life with the guarantee that if you die within a contracted amount of years, your beneficiary will receive any money owned for the remaining years left on the contract.

Each of these methods has it advantages and drawback. And not all annuity companies offer every one of these options, so it is extremely important that you shop around.

 

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