Saturday, November 19, 2011

Annuity – Securing your retired Future

Recession has brought almost everything under strain and annuities are also not different. The total investment and savings option has already gone into jeopardy. Since there is hardly any option of pension, so only savings on an Annuity scheme could help us to face the bad weather of future years. Since, medical expenses are on a constant rise and investment in an annuity scheme could be very much beneficial. It is designed in such a way, that it accepts and grows the funds in favor of an individual. When the annuitization is completed it pays back the money to the investor. 

They are designed in such a way, that it could generate a steady cash flow over a certain period of time. They are very much helpful for the retired persons. This financial scheme could generate the same flow of money. This is almost similar, the person generated during his years of employment. The Annuity scheme can continue till the annuitant or their spouse is alive. They can also be some way or the other uniquely structured to pay funds for a certain period of time. It is not linked to the longevity of the annuitant. An annuity is flexible financial instrument, can be designed or structured according to the need of the investor.

Since, the world is in a grip of a recession, and nearly the crashing out of the world financial market has left almost, everyone clueless. This has become particularly important for the financial companies. Annuity can provide periodic payment of interest to save the life of a retired investor, particularly the medical expenses. 

There are different types of Annuity’s and they are,
  • Immediate Annuity
  • Deferred Annuity
  • Fixed Annuity
  • Bonus Annuity
  • Indexed Annuity
  • Income & Variable Annuity

All the above schemes are based on the Immediate or the Deferred and all the schemes are based on them. But the indexed variety is mainly linked with the rise and fall of stocks and the overall market sentiment.

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