Recently, we have been discussing different kinds of annuities, as well as the advantages and disadvantages that come with each type of annuity. We last went over the advantages and disadvantages of investing in variable annuities. We are going to continue this series by going over immediate annuities and identifying how they might be a good investment option for you.
What Are Immediate Annuities?
As with any other annuity, an immediate annuity is a contract between an insurance company and a policyholder. Unlike other annuities, immediate annuities are purchased with one lump sum installment and then the insurance company makes regular payments to you for a specific length of time. In most cases, immediate annuity payments are sent to you beginning one month after you make the initial installment. With immediate annuity payments, you can choose how often you would like to receive them. Whether you prefer to receive them monthly, quarterly or yearly, how often you receive payments is completely up to you. Immediate annuities can either be variable or fixed, however, it is very rare for a policyholder to have a variable-immediate annuity.As with other annuities, immediate annuities can be customized and tailored to fit your personal needs and expectations.
While this is a very brief and simple overview of immediate annuities, we hope that it was informative for our Orlando residents. If you are interested in learning more about immediate annuities and want to find out if they are a smart investment for you, please do not hesitate to contact the team at Annuity Genius. We are here to provide you with helpful information so you can make an educated decision regarding your financial investments. Contact us today for your free consultation.