Annuities

An annuitant is a person who has the right to receive regular payments from a pension or annuity investment. The contract holder or another individual, such as a surviving spouse, can be the annuitant. Annuities are commonly thought of as income enhancements for retirees. They could be linked to a pension scheme for employees or […]

According to the Social Security Administration, a guy turning 65 today can expect to live until he is 84 years old. The average age of a woman is 86.6. About a third of today’s 65-year-olds will live to reach 90, with about one in seven living to be 95. Annuities entail signing a contract with

An annuity is a financial product sold by insurance firms that guarantees a consistent income stream in retirement. Investors make a one-time or a series of one-time payments, and the annuity returns a fixed amount to them in regular dividends, either immediately or later. These distributions can be used to cover recurring or critical costs.

The Annuity Commencement Date is the date on which annuity payments will start. At the time of application, the Contract Owner usually specifies the Annuity Commencement Date. What happens if the annuitant dies before the annuity start date? An annuity contract usually states that if the annuitant dies before the commencement date of the annuity,

The exclusion ratio simply refers to the percentage of an investor’s return that is tax-free. The exclusion ratio is a percentage based on the return on an original investment in dollars. Any profit that exceeds the exclusion ratio is taxed, such as capital gains tax. The exclusion ratio usually applies to non-qualified annuities. What is

Annuities are retirement plans that can assist offer a predictable, guaranteed income stream throughout retirement. An annuity is a contract with an insurance company that guarantees you a certain amount of money during your retirement years. What is meant by annuity in insurance? An annuity is a financial product that allows you to receive a

A deferred income annuity may be perfect for you if you’re seeking for a future source of guaranteed income that will last the remainder of your life. A deferred income annuity (DIA) allows you to purchase a guaranteed1 “retirement paycheck” with a lump amount or repeated transactions. Starting at a future date of your choosing,

An annuity is a long-term contract between you and an insurance company that allows you to amass cash tax-deferred in exchange for a guaranteed income that you cannot outlive. What is an annuity and how does it work? An annuity is a long-term investment issued by an insurance company that is intended to protect you

A qualifying annuity is a retirement savings plan that uses pre-tax earnings to fund it. A non-qualified annuity is one that is funded by after-tax funds. To be clear, the Internal Revenue Service is the source of the nomenclature (IRS). Qualified annuity contributions are deducted from an investor’s gross earnings and grow tax-free alongside their

An annuity in arrears is the polar opposite of an annuity in advance (also called an “ordinary annuity”). An annuity in arrears is a regular, identical monetary payment given at the end of equal time intervals, such as a mortgage payment. Mortgage payments, like rent, are due on the first of each month. The mortgage