Annuity Insurance

Annuity is like a tax shelter product and a contract between you and the insurance company, that can be use by businesses or individuals. People aged 59 or older can benefit from it.
For those people that are worried about payments, usually after retirement and to supplement a pension,this is for them. This is how it works,
You pay either a lump sum or a series of payments(yearly or monthly).This pays a beneficiary when you die or payments after retirement .

Most annuities are paid with after tax dollars, a great benefit to this is you don’t pay any taxes, until you draw the money out later in life.

There are two basic types of annuities, Fixed & Variable.

Fixed Annuities

This type is where you are guaranteed a “fixed” interest rate for at least one year,sometimes, as long as 5 years.
With an added plus..they will also guarantee a minimum rate, that means if the interest rates fall out, you will get this set rate.

The only risk you have is , Is the insurance company financially sound? My advice is to pick a well known company that has a proven track record.

Variable Annuity

You guessed it, a variable annuity is not a guaranteed rate, and furthermore you have complete control over whether it is a success or not, but with the agents help….most times not…this option is for the experienced investor, or one that can take a loss with no worries.