What Is An Annuity And How Does It Work

An annuity works by transferring risk from the owner called the annuitant to the insurance company.

What is an annuity and how does it work. First and foremost an annuity is a product which you purchase from either a super fund or life insurance company with a lump sum using either money from your superannuation or regular old savings. Sold by financial services companies annuities can help reinforce your plan for retirement. Some annuities called variable annuities offer rates of return pegged to something like the stock market.

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. An annuity is a contract made with an insurance company that guarantees an income stream for the owner of the annuity or annuitant. An annuity is an insurance contract that exchanges present contributions for future income payments.

First they have the potential to lower your risk when chosen over say stocks. Annuities work as insurance against outliving your savings. What Is An Annuity And How Does It WorkGet a FREE trial of our life-changing Financial Peace University today.

An annuity is a financial product for the average consumer one typically designed to help you save for retirement. There are many advantages to annuities and they supply safe retirement financial savings for hundreds of. Once purchased the annuity will provide you with income payments which can be made monthly quarterly half-yearly or yearly.

Variable annuities on the other hand work a little differently. An annuity is a customizable contract between you and an insurance company. Those payments can begin immediately or at some future date.

The goal of an annuity is to make sure you dont outlive your retirement savings. An annuity is a contract made with an insurance company that guarantees an income stream for the owner of the annuity or annuitant. You make a payment or payments to an insurance company and in return they promise to grow that money and send you payments during retirement.