How To Purchase An Annuity

The annuities DRS offers are administered by Washington state with investments managed by the Washington State Investment Board.

How to purchase an annuity. When you buy an income annuity you enter into a contract with a life insurance company in which the insurer agrees to make fixed monthly income payments in exchange for a lump sum of money. An annuity due you may recall differs from an ordinary annuity in that the annuity dues payments are made at the beginning rather than the end of each period. Not all annuities are the same and you should know the differences between each and make sure they align with your goals.

Treat your annuity like an insurance policy and file accordingly. You make a single lump sum payment to the insurance company and it begins paying you income one annuity period after purchase which can be 30 days to one year later. This usually takes around a month.

Fixed Annuity Pays a specified interest rate for a set number of years. The buying process itself is essentially a case of transferring funds from your pension pot to your annuity provider. Log in to My Account and click Withdrawals and Changes to Installment Payments Then use the online tool for withdrawals.

Image by Julie Bang. Annuities offer a series of regular fixed payments from an investment account and continue until the account is depleted. You could roll over the money from an old 401K or IRA into an annuity.

The company can help you find the right insurance agent for your unique financial objectives. SMS is committed to excellent customer service. If your primary reason for purchasing an annuity is a safe and steady way to grow your retirement savings a fixed or fixed index annuity is the best option.

What is An Annuity. Fixed Index Annuity offers principal protection and upside potential based on the performance of a market index. An annuity is a guaranteed income plan you purchase.