The Advantages of Death and Pension Annuities and the Income You Can Earn From Them

An Annuity is an agreement between the insurance company and the investor. The person receiving the payments of annuity is known as the annuitant. The owner and the annuitant may or may not be the same person. Apart from annuitant, a beneficiary is also named in the agreement. The beneficiary receives benefits or the payments if the annuitant dies.

 Annuity Products

A Death and Pension Annuity benefit is received by the beneficiary if the owner of the annuity dies before the payment of full agreement amount. Death annuity benefit is different from other annuity benefits.

Annuities is either fixed or deferred. With fixed immediate annuity, the investor starts receiving returns immediately. In the case where the annuitant dies before the full agreement payment, the beneficiary will receive the rest of the amount.

Annuity Payment

In deferred annuity plan, the payment is not immediate. Payment is received by the owner on a specific date mentioned in the agreement. In this case, if the owner dies, the death benefits received by the beneficiary are better than the fixed annuity. But in deferred variable annuity it is also likely that the owner may lose a large amount of money if the market is not performing well.

The Death and Pension Annuity benefit in a deferred annuity is usually the money left in the agreement and the interest which is added till the owner's death.

Annuity Income

A pension annuity pays us a good amount of income after we have retired. The benefits in this scheme depend on a few factors such as:

1. The amount in the pension fund
2. Age
3. Place where we live
4. Health
5. Selection of continuing pension for our spouse.

Death and Pension Annuity benefits are different for both men and women. This is because women are most likely to live longer than men, according to some researches.

Annuity Cash

The plans available for the pension annuity are:

1. We have the option to choose single life annuity or payment continuing to our partner.
2. We can select from level pension annuity and escalating pension annuity. Level annuity provides us same return for the rest of the life. But the escalating annuity pays a lower amount initially and then increases the amount each year.

In both Death and Pension Annuity careful planning and reading all the options is necessary before buying. The prospectus provided by insurance company consists of every detail we need to know about annuity and its benefits. Still, if there is a need for more information we can consult financial advisor. They will provide us with all the information and guide us in the right direction.

Annuity

Planning 2-3 months before retirement is an advisable tip for a Death and Pension annuity. Keep in consideration all the option and select accordingly. Ask your insurance agent to explain at least a couple of annuity options to you. Check for the pros and cons for each one. Then only you'll be able to make a comparative analysis of the options and choose one that caters best to your specific requirements.

Visit [http://www.annuitycampus.com] for more Annuity and Life Insurance Tips and Tricks.

Call Robert Eldridge directly at 800-643-7544.

Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors.

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