We just very briefly went over immediate annuities. We talked a little bit about what they are and how they work. While immediate annuities offer Orlando residents several advantages and benefits, there are 
also some disadvantages involved with investing in immediate annuities. Before you make any financial investment, it is always best to do your research in order to determine whether or not the investment is right for you.
Advantages of Immediate Annuities
1. Immediate annuities provide you with a regular, reliable stream of income. As we mentioned before, policyholders start receiving payments about a month after they make the initial payment. They can also determine how often they receive these payments so, they know exactly when to expect their regular payments. This is especially helpful for policyholders who are retired and have no other source of regular income.
2. One huge advantage to investing in immediate annuities is they are protected from creditors. So, if a policyholder is struggling financially and is forced to declare bankruptcy, immediate annuities can serve as a small, protected source of income.
3. Immediate annuities offer their policyholders guaranteed returns on their investments. When interest rates drop, immediate annuities still present guaranteed returns.
Disadvantages of Immediate Annuities
1. If a policyholder is looking for high returns on their investment, then an immediate annuity is not the right choice. While immediate annuities offer guaranteed returns, they do not offer the amount of return given by stocks.
2. Although immediate annuities can offer a guaranteed stream of income throughout the duration of one’s life, if the policyholder happens to pass away just a couple of years after they purchase the annuity, the insurance company will collect the entire contribution, leaving no money for policyholder’s family.
There are several things to consider before purchasing an immediate annuity. Be sure to contact our team of specialists at Annuity Genius if you have any questions regarding this type of financial investment.