Annuities
Annuities Offer Long-Term Income to Senior Citizens in Missouri
Senior Health Solutions offers a variety of annuity options for St. Louis seniors
An annuity is a valuable financial planning tool that can offer fixed income to you and your family. There are several types of annuities available to senior citizens that can offer income for extended periods of time, even for the rest of your life.
Annuities are split into two basic categories – immediate annuities and deferred annuities. Immediate annuities involve a lump sum premium that immediately begins being paid out in installments. These may offer beneficial tax terms as well.
Deferred annuities, by contrast, involve 2 phases – an accumulation phase, during which you pay premiums that accumulate interest, and the payout phase, during which periodic installments are paid to you based on the details of your plan.
Adding annuities to your financial portfolio may be the right decision for you
Secure low-risk income for your future with an annuity
Annuities offer several benefits to senior citizens. First, unlike an IRA or 401k, there is no annual limit to the contributions you can make to an annuity. In addition, the money is tax-deferred, meaning it is not taxed until you receive payments. The payments are also generally guaranteed, meaning there is little risk of losing your annuity income. They also offer legal protections, such as possible exemption from creditors and unconditional exemption from probate proceedings.
What types of annuities may be available to you as a senior in Missouri?
Annuities come in many different forms beyond the basic distinctions of immediate and deferred. For example, there are many different ways you can elect to receive your payments. Among these options are:
Standard life
Payouts are made for the rest of your life with no limit, even if it exceeds the value of the premiums, but end when the contract holder dies regardless of remaining value
Life payout with refund
Similar to a standard life plan, but guarantees a refund to a beneficiary of your choice if any principal is left over after your death
Life payout with period certain
Similar to a standard life payout but guarantees payments for a certain period of time even beyond death. For instance, if it guarantees 25 years and you pass away after 19 years of payment, your beneficiary will receive 6 more years of payment
Joint life
Has two annuitants (or members on the plan) and continues to pay out as long as both of them are alive
Joint survivor life
Similar to joint life but continues to pay as long as one of the two annuitants is alive
Period certain
Pays for a fixed period of time regardless of survivorship
Fixed amount
Payments are made until a fixed dollar value of the contract has been reached
