Annuities Types
Different companies provide you different types of life annuity plans which you can easily choose according to your specific needs. Every policy has a different investment and a different rate of return. Annuity is a contract in which a person enters with the insurance company. The insurance company promises to pay the “annuitant” a specific amount of money as long as he is alive. The insurance company offers guaranteed lifetime income options to you if you have entered into this contract.
You are given a secured time-period during which you will continue to receive payments. In this article, I would like to tell you about the different types of annuity option plans.
1. Straight Life annuity plans
In this contract, monthly annuity payments are made as long as you are alive. This will assure you a monthly rate of return which can be very beneficial for you. You have to invest a certain amount of capital before you receive a monthly payment from the insurance company.
2. Annuity options for two people
There are various companies who have annuity options that can cover the lives of two people. If one person dies then his policy extends towards the other person. Usually a married couple takes such types of annuity options. This option is very good because it ensures that you continue to get a fixed rate of return on a regular basis until and unless both the annuitant and their spouse die. One disadvantage of this policy is that you will receive a small amount of return every month.
3. Certain time period annuity
In this policy you have a minimum guaranteed payout period. Even if the main annuitant dies during this specified period, a beneficiary would continue to receive the payments until and unless the specified period ends. This policy also has a drawback, because you get payments for a specified period of time the amount that you receive would be lower than the amount that is given is the life income annuity option.
Try FreeAnnuityrates.com to know more about the Annuities Types.
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