What is Annuity Insurance?

Shawn Plummer

CEO, The Annuity Expert

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

  1. Lifetime Income: Ensures a continuous income stream even if other retirement funds are exhausted.
  2. Inflation Protection: Some annuities adjust payouts for inflation, preserving purchasing power.
  3. Death Benefit: Certain annuities provide a death benefit to beneficiaries.

Key Features of Annuity Insurance

FeatureDescriptionBenefit
Guaranteed IncomeRegular payments for life or a set periodFinancial stability in retirement
Tax DeferralEarnings grow tax-deferredTax efficiency
Death BenefitPayment to beneficiaries after deathLegacy planning
Inflation AdjustmentIncreases payments to match inflationMaintains purchasing power

Related Reading: Do Annuities Go Up With Inflation?

Conclusion

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.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us
First
Last

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top