ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

5 Benefits of Immediate Annuity

Updated on December 1, 2017

Annuity plan refers to a service that is provided by investment companies and banks. Under this plan, an amount is paid to the company which, after a certain period, is returned to the user of the account on a regular basis in a predetermined amount. This is a popular method of saving money for the future purposes of retirement or in cases where you are the recipient of large amounts of money which you’d rather not spend all at once.

Now there are many types of annuity plans available for people from all walks of life. There are fixed plans and variable plans. There is a plan by which in the event of your untimely passing, your family could have access to the money, thus, securing their future. There are also plans in which the regular payments, called the annuitization phase, starts immediately after the lump sum money is deposited in a single installment.

An immediate annuity is famous among people who come into large amounts of money and rather than having access to all of it at once, get regular deposits from the company. There are many benefits to such a plan, some of which are listed below.

1. Constant Cashflow

The economy can be unreliable as it depends on any fluid factors. Even if you are working after your retirement, it is always good to know that there will remain a constant inflow of cash per month which takes away the worry if your month was not very fruitful.

An instant Annuity gives you this option. Depositing a lump sum amount after retirement in a plan that starts the regular deposits immediately after the deposits, will ensure a safety net which you can always rely on.

2. Safety from Over Expenditure

When an individual comes into money like a lottery or a large inheritance, the itch to buy extravagant things is almost unquenchable. A large amount of money makes one lose track of the rate of outflow, causing the well to dry before you know it.

If you put these large amounts of money in an immediate annuity, the golden egg remains well and safe in the hands of the company and every month you receive the predetermined amount, which allows you to enjoy your gain for a long period of time.

3. Typically Higher Returns

Keeping money in storage has no effect on it. The amount neither slides down or up, which is why people invest and look for ways to increase the assets. The steps that one takes for such may cause dire losses that are difficult to recuperate from.

There are typically higher returns when compared to other means like mutual funds and bonds. These gains can be seen with the increases in your monthly amount.

4. Protection against Defaults

For those who are unaware, defaulting refers to the not being able to pay the interest or principal on a loan or any debt you owe towards a company. In these situations, all the assets of the individual are seized by the company.

Being an insurance product, it remains safe and protected from default by the assets of the company you issued the annuity with.

5. Compensation

If the company you have been dealing faces any financial trouble, they will be ready to pay you a compensation amount which could differ from company to company or based on the deposited amount.

An immediate annuity is a good solution for people who want to manage their money in a judicious and safe manner. This is a sure way to make arrangements for a comfortable life and have the satisfaction of a monthly hassle free inflow of money.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)