Annuities:  The Shocking Truths Revealed

Discover the Shocking Secrets About Annuities that Banks
and Insurance Companies Don't Want You to Know.

-- By Tony Bahu
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Immediate Annuity Quote

Getting an immediate annuity quote could start you on the journey to better management of your retirement funds. Immediate annuity involves paying a one-time lump sum premium and you can start receiving your payments well within the first year. Unlike deferred annuity, immediate annuity skips the accumulation phase to proceed directly to payout.

Immediate annuity can be a good investment when you retire because it ensures that the hard earned money you have collected over years is well distributed and managed for the rest of your life. What is more, immediate annuities offer some flexibility. Buying immediate annuity with a life option can be the perfect solution for people who worry about living on well after their savings have disappeared. The life option ensures that you will receive payments as long as you are alive. If that's not what you are looking for, you could instead choose a fixed period for payout - say 20 years.

Your age and gender play an essential role in determining what you receive as payments under an immediate annuity. The insurer works out your life expectancy depending on this and then decides what to pay you. For instance, a woman would receive less in every payment than a man of the same age because she has higher life expectancy.

Immediate annuities also have the fixed and variable varieties. In the case of a fixed immediate annuity, which would be linked to interest rates, you would know beforehand how much you would receive in each payment. Under variable immediate annuities, the payments would depend on the performance of mutual fund-like subaccounts that your money would be invested in.

Ask for immediate annuity quotes from as many insurers as you can because the features of the contracts they offer would differ. While some make payments as long as the annuitant is alive, others do so only for a fixed number of years. In some cases the insurer would keep the money in case the annuitant dies before the payout balance is used up. Ask a lot of questions so there is no room for doubt or rude shocks in the future. To know what questions you need to ask, visit - a resource offering a product that will open your eyes to the at times deceitful world of annuity sales. It will tell you of the ways in which agents often mislead clients, costing them thousands of dollars. Arming yourself with this knowledge before buying immediate annuity could save you a lot of money.