FIXED ANNUITY: THE NEW IMPACT ON YOUR FINANCIAL STABILITY

It is not uncommon these days to see a lot of people showing their trust to different annuity providers to seek benefits from their various annuity schemes. The annuities project a firm ground to build the future safely. This is a wonderful way to secure the healthy retirement life. The annuity providers have flooded the market with innumerable annuity schemes. The schemes are carefully designed to enable the retired person to get a fixed monthly payment. Each annuity guarantees healthy benefits. It is your own decision to select the appropriate annuity scheme for your future.

The different annuity schemes generally depend on annuity rate. It is a vital factor to determine how much money you will receive as monthly payment. Fixed annuities are the schemes which are aimed to bring proper monthly benefits to a retired person. Understanding of annuity rates is important before the selection of any particular annuity scheme.

Understanding Annuity Rates

The annuity rates are basically the rate of return on your actual investment. The different annuity schemes contain different types of annuity rates. The retired people most of the time dream of receiving the best possible rate of return on their investment. The rate of return generally depends on the economic policy of the government and the current market interest rate. There are some annuity schemes which guarantee a profitable rate of return on their investment.

What is Fixed Annuity?

The fixed annuity is easy to understand and simple in nature. The fixed annuities have the reputation of providing steady rate of return on the ensured period of years. The rate of return in this scheme does not depend on market fluctuations like variable annuities. The fixed annuity is flexible and helpful. It is basically a risk free scheme.

It provides the option of withdrawal after a certain period of time. The person can easily remove his investment in this scheme. The fixed rate of return is beneficial for retired person. They can easily pay their loans with this additional income and also cope up with the rising standard of living. The important facilities of this scheme have made it the number one choice for the retired people. Most of them go for this scheme than any other annuity schemes.

Things to Consider Before Buying Fixed Annuities

Rate of Return – it is important to know the initial rate of return and the other bonuses which will not come into account after the end of the insured period. Comparing the different fixed annuities from other investment can help you to find the right plan. This way you will get the best rate of return.

Surrender Period – every annuity provides you a designated time period before it starts giving benefits without any penalty. The surrender period may be anywhere from one year to fifteen years.

Insurance Company Rating – the most important thing before buying the fixed annuity is to look for the insurance company’s rating. The high rating helps to impress the clients and appeals the outsider to have faith on the insurance company.

Asset Accessibility – there are few annuity schemes which allow the clients to take out the annual interest without the hassle of surrender charges. It is vital to know if your annuity has this facility or not because most of the schemes provide this benefit after certain circumstances are met.

The people generally seek the knowledge of annuity rate before making their decision. Sometimes, they also compare the different annuity schemes from different annuity providers to find out the best benefits. They take the help of annuity calculators to know the rate of returns on their investment.