One of the most important decisions you’ll make saving for retirement is your annuity choice. There are many types of annuities, and each one has different features. One question that retirees often ask themselves is if their annuity requires premium payments. If so, this means that they will have to pay a certain amount every month or year in order to keep up with their annual withdrawal limit. Fortunately for those who need an answer right now, there’s no need to spend hours researching on your own! This guide provides a comprehensive list of all annuities that require premium payments so you can find what suits you best!
Flexible-Premium Annuities Can Require Premium Payments
Flexible-premium deferred annuities may sometimes require the payment of fixed-level premiums. The contract owner of a flexible premium annuity may remit the billed premium, more or less than the billed premium, or no premium at all if he or she wishes. With flexible-premium annuities, the contract owner may pay a premium when their cash flow permits and pay no premium when it doesn’t.