IMMEDIATE Annuities
St. Louis, Missouri Insurance Professionals Helping Seniors Enjoy Their Retirement With Immediate Annuities
Our expert agents help erase your financial worries
What is an immediate annuity?
An immediate annuity is a type of fixed financial contract. In return for a lump sum payment, an annuity holder receives regular payments. The payments are made according to the terms agreed upon before the investment. It begins when the annuity investor makes a payment to the insurance company. The insurance company invests the funds. Within a year the company begins sending regular payments to the annuity holder. Payments are made on a monthly, quarterly, semi-annual, or annual basis.
For the annuity period, individuals choose either a fixed term or a lifetime term. Some lifetime terms end with your death; others provide death benefits to a named beneficiary. If you choose an annuity with high regular payments or significant death benefits, you may pay more to fund it. There are different types of immediate annuities. You may choose a classic annuity, where you receive level payments for the annuity term. Alternatively, you may select an immediate variable annuity or an indexed annuity. Like the classic annuity, these provide regular payments, but the amount of the payment varies with the performance of the portfolios selected by the annuity holder.
The pros and cons of annuities
When you purchase an annuity, you are purchasing the right to receive fixed income for a certain period. Unlike other investments, that stream of income begins quickly. Many people like the security of knowing that they have a regular income.
Annuities also provide tax breaks. If you invest in a non-qualified annuity, the part of your regular payment that is a return on your principal is tax-free. Only the amount of the payment attributed to interest is taxable.
The biggest con against annuities is the significant sum which is required to fund. And, once you invest in them, you usually cannot get any of the principal back.
With annuities, both you and the insurance company are gambling. If the annuity period ends after only a few payments because of your death, you may invest more than you receive. Alternatively, if you live longer than the insurance company expects, you reap the benefit.
Who should consider an immediate annuity?
Immediate annuities are best for individuals who want guaranteed regular payments that begin quickly. They are also a good option for those who want to diversify their portfolios. For some individuals, the after tax return also may be higher than what they would receive from other conservative investments.
Skilled St. Louis, Missouri annuity professionals make sure your retirement is funded and secure
Retirement is an exciting time of life. Finally, you have time to do some of the things you have always wanted. It can also be an uncertain time. An immediate annuity can guarantee a steady stream of income and ensure your peace of mind. The St. Louis insurance professionals at Senior Health Solutions help you examine and select the best immediate annuity for you. Contact us now at (636) 244-4415 or online to explore your options.
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
