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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What is an annuity

Any stream of fixed payments over a specified period of time is referred to as annuity. The term annuity is commonly used in the insurance industry where it refers to two different types of legal contracts. Of these, the first kind is immediate annuity and the second kind is deferred annuity.

Immediate annuity
This term came into parlance over four hundred years ago. Immediate annuity refers to insurance policies, which make a series of level or fluctuating payments. These are usually paid over a fixed period of time or during the life span of one or two individuals. This annuity is considered an excellent mode for distributing savings and is commonly used to provide pension income to a person who is about to retire.
A life or lifetime annuity is a common form of immediate annuity, which can be purchased from an insurance company.
Reversionary annuity is a variant of life annuity, where annuity for a spouse can also be paid.
Impaired life annuities for smokers or people with particular illnesses are also available.

Deferred annuity
This term came into application in the 1970s and refers to contracts that are similar to bank certificates of deposits. These offer the buyer a safe return of interest on his or her money, are useful to stock index funds or other stock funds depending on the performance of the market. These are an excellent means to increase and accumulate savings over a period of time. While there are various varieties of deferred annuity, it is worthwhile to remember that all of them have tax-deferred growth where an increase in account values is not taxed. Among the various kinds of deferred annuity, there are,
Fixed deferred annuity which grows by interest rates alone
Variable annuities that permit allocations to stock or bond funds and for which account values are not guaranteed to drop below the initial amount invested
Equity indexed annuities which are a hybrid of the above two types. The EIA offers a guarantee that the account will not drop below the initial amount invested and also provides a chance to participate in the upside potential of any increase in the value of a major stock index.

While today there is a good range of options to choose from, going through the right channels can still be helpful in getting the apt annuity for you. With a panel of trusted experts and an excellent track record of satisfied clientele, we at annuitymd would be glad to help. For any queries at all, please feel free to contact us. .