ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Annuities Explained

Updated on July 18, 2014

Earn Forever with Annuities

Are you looking for a constant source of income that will last all through your life? One that will grow as the years progress? Do you seek revenue whose that you can’t outlive and is not burdened by tax? Welcome to the world of annuities. What are they? These are contracts that are sold by private insurance companies. Their money grows on a tax-deferred basis. They offer lifetime income. As such,one is entitled to a periodic income for as long as they live. Consequently, they are also a good way to be protected against inflation. They are of three types: indexed, fixed and variable annuities.

Indexed Annuities

Indexed annuities are popular. Regulated by state insurance agencies, they are sold by insurance agents. They are a good retirement-savings vehicle. In fact, they are a safe place for that money that you are intending on keeping for your retirement. Be sure to go for the best indexed annuities available in the market. You can get this from the insurance companies with the best of ratings. Why is this? This because they have experience with these markets. In addition, because one funds annuities directly from personal or investment funds, you should undertake careful scrutiny of companies in order to ascertain which is the most reliable.

Advantages of Indexed Annuities

The annuities give one a wide array of options for index crediting. You have the option of electing a declare interest rate. Moreover, these annuities are designed for higher potential rates. Additionally, all indexed annuities have a floor of zero. How s this important? Basically, it means for the very worst case scenario( such as happens when there is a downturn in the market index), you will just fail to receive interest for that specific period. This means that you do not lose any previously credited interests and premiums.

What Happens when the Purchaser Dies?

Indexed annuities cover market dips to shield the owners from any losses. What of the unfortunate event in which the annuity owner happens to pass away? What happens next?

When this occurs, the beneficiary mentioned in the contract receives the remaining policy value. In case additional guaranteed payments have remained, subsequent annuity payments are credited to the beneficiary within the same intervals that the deceased had been receiving them up to expiration of the guarantee period.

What are Variable Annuities?


The annuities are mainly insurance products in which any annuity-holder makes an expense or a number of expenses to the company offering the service of annuities. This is in the switch over for a guaranteed stream of profits for the rest of the his or her whole life or up to a pre-agreed end date of the annuity.

Returns from the variable annuities fluctuate depending on the performance of the user investments into which plan or the annuity premium is invested.
Returns from the variable annuities are frequently subject to tax deferment profit. The downside to the variable annuities is the venture risk. If the insurance investments made by utilizing the annuity premium perform badly, the annuity holder could end up seeing a extensively diminished stream of earnings from the annuity. If you select the most reliable insurance corporation, you can be able to invest small amounts in the variable annuities and reap big rewards in future.

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)