What is Annuity Insurance?
Annuity insurance is a financial product that provides a steady income stream, typically for retirement. It’s a contract between an individual and an insurance company where the individual makes a lump-sum payment or series of payments, and in return, the insurer agrees to make periodic payments to the individual at a later time.
What Does Annuities Insure a Person From?
Annuities insure a person from outliving their savings. They provide financial security by ensuring a steady income for life or a specified period. This is particularly valuable in retirement, as it mitigates the risk of depleting one’s retirement funds.
Examples of Annuity Insurance Benefits
- Lifetime Income: Ensures a continuous income stream even if other retirement funds are exhausted.
- Inflation Protection: Some annuities adjust payouts for inflation, preserving purchasing power.
- Death Benefit: Certain annuities provide a death benefit to beneficiaries.
Key Features of Annuity Insurance
|Regular payments for life or a set period
|Financial stability in retirement
|Earnings grow tax-deferred
|Payment to beneficiaries after death
|Increases payments to match inflation
|Maintains purchasing power
Related Reading: Do Annuities Go Up With Inflation?
Annuity insurance offers a solution for managing financial risk in retirement, providing a guaranteed income stream and ensuring financial stability. It’s particularly beneficial for those seeking to secure their financial future post-retirement. Contact us today for a free quote.
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