Immediate Annuity

Financial planning is the key to live a self-sufficient life after retirement or any other circumstances, which may lead to financial instability. If you have already invested in options like fixed and variable annuities, it is definitely a wise act from your side. However, if you have still not followed the rules of acting faster in life, you may still take advantage of Immediate Annuity option to weed out financial difficulties from your life.

What Is Immediate Annuity?

As the name suggests, immediate Annuity is that form of investment agreement between you and your insurance company according to which, the annuitant starts receiving the benefits of investment immediately after first premium is paid. If you are the owner as well as the annuitant of your investment policy, you will be responsible for paying the premium as well as for enjoying the benefits of this wonderful form of annuity.

Who May Gain Advantage Of Immediate Annuity

Immediate annuity has been devised and designed to provide benefits to different types of investors. Let us take a look at the list of most advantaged investors:

• First and foremost, the people nearing the age of retirement, but still having small amount to fill the spot of savings, is eligible for extracting the benefits of immediate annuity. A person may invest these small amounts in annuity and start receiving wonderful benefits right away.
• The people, who are not capable of handling large amount of money, may call themselves as eligible candidates for Immediate Annuity. This will provide them an opportunity to utilize the money received as benefits from this annuity in a better way.
• The people receiving large amount of money in the form of prize money may also invest their money in immediate annuity. This will prevent them from wasting their money and keeping it at a safe place. Also, they will keep on receiving immediate benefits from this investment to fulfill their needs.

Different Forms Of Immediate Annuity

Immediate annuity option is available in different forms to facilitate different types of investors. Here is the list of these different options:

• The fixed immediate annuity allows an investor to earn a specific amount of money on monthly basis.
• The variable Immediate Annuity offers strong equity and low interest rate and thus, is becoming a preferable choice of most of the investors.
• Non-refund, also known as straight life immediate annuity, ensures a fixed income for rest of the life of investor.
• Joint immediate annuity, where the income benefits are divided amongst two or more of the people nominated by the investor.

With Immediate Annuity, a person may earn advantages like tax-free proceeds and income equivalent to that ensured by deferred annuity. Another advantage of this type of annuity is security offered by it as a future income sources. Thus, as they say, it is never too late to begin, start looking for immediate annuity option today.