Indexed AnnuitiesIntroducing Indexed Annuities from the
|
|
Annuity Payments - How are They Structured?Annuity payments are made in two phases: by the annuity owner during the accumulation phase and by the insurance company during the annuitization phase. In the accumulation phase, you make annuity payments to an insurance or investment company over a period of time or in a lump sum, and it earns a rate of return. In the annuitization phase, the insurance company makes annuity payments to you. Depending on the options you select, the company will make annuity payments either for a certain time (including until you die) or for a certain guaranteed amount.An annuity has a death benefit, although it is not like one found in a life insurance policy. If you die before you annuitize (i.e before annuity payments begin), your beneficiary will receive either the current value of your annuity or the amount you have paid into it, whichever is greater. For example, if you die when your investments are performing poorly and your account value is less than what you have paid in, your beneficiary will receive annuity payments for the amount you paid in. However, once you begin to receive annuity payments, you no longer have a death benefit on your contract, unless you have chosen one of the guaranty options. For example, if you annuitize at age 65 and die at age 67, the insurance company keeps the money in your contract and makes no further payments on your annuity.
|
Annuity Definition Annuity Payments Annuity Ratings Annuity Retirement Annuity Tax Consumer Reports Fixed Annuity Index Annuity S&P 500 Index Sell Annuity Variable Annuity Mortgage Insurance |
