What does the annuity period mean? An annuity period is a fixed time you will receive payments from an investment. This guide outlines the specifics of annuities and the difference between an annuity and a pension plan.
What is the Annuity Period?
The annuity period is when an annuity pays out to an annuity holder through annuitization. The annuity period can last a specific amount of time or last for the rest of a person’s life.
Payout Options During The Annuity Period
During the annuity period, an annuitant settles the funds in the annuity in periodic income payments under various settlement options that include:
- Life Annuities: A life annuity is a fixed-income contract in which an insurance company commits to paying income payments throughout the annuitant’s lifetime.
- Joint and Survivor Annuities: A joint and survivor annuity is a life annuity (two lifetimes) that provides income to the last surviving covered individual until death.
- Refund Annuities: A refund annuity is a contract that guarantees that a particular amount will be paid, no matter when the annuitant passes away.
If you’re looking for a fixed payment plan that will last for a specific number of years, an annuity might be the right investment for you. Annuities provide peace of mind and can be helpful if you’re worried about outliving your retirement savings. We hope this guide has answered all of your questions about annuities and given you a better understanding of how they work. Contact us today to find the perfect annuity plan for you!
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Frequently Asked Questions
Which of the following best describes what the annuity period is
The “annuity period” is the time during which accumulated money is converted into an income stream.
Which of the following is true regarding the annuity period
The annuity period is the time when an annuity actually pays out to an annuity holder.