Annuities

“A pension is paid to the company/government and then paid out to the individual (upon retirement) by the company/government. An annuity is a contract between you and an insurance or investment business that commits to paying you a set sum each month or year. What is a government annuity for retirement? FERS is a retirement […]

Group annuity contracts are those that are chosen by a company to be offered as retirement benefits to their employees. Nonprofit and public-sector institutions, such as public schools, charities, and hospitals, are particularly fond of group annuities. Employees can fund these retirement plans or employers can contribute to them. Annuities have the advantage of being

Variable Annuity Overview from John Hancock. Home. Overview of Variable Annuity. An annuity is a long-term contract between you and your insurance company that provides you with income in retirement. Can you lose your money in an annuity? Variable annuities and index-linked annuities both have the potential to lose money to their owners. An instant

A joint and survivor annuity is a type of insurance for married couples that pays out on a regular basis as long as one partner lives. The benefit of a joint and survivor annuity is that it pays out if one or both persons live longer than planned. For a young couple, this is not

An annuity is a contract between a person and an insurance firm that can be used to help you save, safeguard your savings, or provide a regular income stream. Fixed* or variable annuities are available. Because the insurance company accepts the investment risk, your balance is safer with fixed income annuities* than with variable annuities.

When you retire from your pension, provident, preservation, or retirement annuity fund, you must utilize at least two-thirds of your investment to buy an annuity income, which is essentially a pension income that is paid on a regular basis during your retirement years. Many retirees find the available alternatives and accompanying decision-making to be daunting

During a depressed market, a GMWB rider preserves your annuity’s maximum value, commonly known as the “benefit base” or “high-water mark,” while allowing the underlying investments to increase. A GMWB shifts market and longevity risk from the annuity owner to the insurance firm underwriting the guarantee in this way. How is a benefit base the

Riders for living and death benefits are optional add-ons to annuity contracts that you can purchase for a charge. A living benefit rider ensures that the annuitant receives a payout while he or she is still alive. Beneficiaries are protected by a death benefit rider if the annuity’s value drops. Not all riders are created

A buffer annuity is a variable annuity that resembles an indexed annuity in several ways. Indexed annuities track the performance of a market index, allowing investors to share in some of the gains. These products usually provide some loss protection and set a limit on the amount of money you can make over a set

A multi-year guaranteed annuity, or MYGA, is a fixed annuity that guarantees a fixed interest rate for a set length of time, often three to ten years. A MYGA is suited for someone approaching retirement who seeks tax deferral and investment return assurance. How does a guaranteed annuity work? On the investor’s contributions, fixed annuities