How Does Annuity Work

Often marketed as a financial product an annuity is basically a contract between you and an insurance company designed to provide an income that is guaranteed for the rest of your life.

How does annuity work. An immediate annuity or a deferred annuity. You invest some of your savings with Challenger and we pay you guaranteed regular payments for either a fixed period or for the rest of your life depending on the type of annuity you choose. Annuities are contracts made with an insurance company largely as a way to plan for retirement.

Like most annuities index annuities can provide you with a steady stream of income in retirement. You can purchase an annuity with a portion of your retirement savings in either a single payment or with multiple payments depending on the type of annuity. How do annuities work.

You make payments aka contributions to your account over time. An annuity is a long-term investment that is issued by an insurance company and is designed to help protect you from the risk of outliving your income. In this short animated video see how annuities work what they are and how annuities can help provide retirement incomeFind out more by visiting httpsw.

How Does an Annuity Work - Watch This Before You Take the Plunge. Its often part of retirement planning though traditionally its what people bought with their nest eggs when they retired. People who have serious health problems should be offered a higher rate than someone whos likely to live for many years.

Some annuities called variable annuities offer rates of return pegged to something like the stock market. Immediate Annuities An immediate annuity will start paying out 30 days to 1 year after you have purchased it. Depending on the type of annuity your money would then be used for other investments like mutual funds.

How Does an Index Annuity Work. If you choose a Challenger lifetime annuity we will. Sold by financial services companies annuities can help reinforce your plan for retirement.