What Are Annuities?
What Are Annuities?
Another way to prepare for retirement is through annuities. This is a contract between you and an insurance company, requiring that the insurer make payments to you now or in the future. To buy an annuity, you can either make a series of payments over a specified time or pay it all up front. The payout might then come back to you in one sum or through a series of payments.
There are three benefits of annuities for retirement planning:
- Tax-deferred growth so that you don’t have to pay taxes on investment gains or the income from the annuity until the funds are withdrawn.
- Death benefits for your beneficiaries in the case that you pass before you receive any payments from the annuity.
- Periodic payments that could be for the rest of your life and that of your family.
There are three types of annuities: indexed, fixed and variable. Annuities are great for building retirement funds because the periodic payments can help with living expenses since a regular stream of payments mimic the monthly earnings one is used to while working. To find out more about annuities and if they are a good retirement option, simply give us a call or send an email. We’ll gladly see if annuities are a good fit for your retirement planning portfolio and help you with other avenues as well.
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Note: Not all benefits are available in every state, but we can provide further information on this once you contact us.
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Frequently Asked Questions
Life insurance is important for seniors as it provides a way to ensure financial security and protect their loved ones even after they pass away. It serves as a safety net by covering expenses such as funeral costs, outstanding debts, and estate taxes. Additionally, life insurance can help replace the lost income that would have supported their family, providing peace of mind and stability.
Yes, seniors should seriously consider having life insurance. It offers a valuable layer of protection that ensures their loved ones are financially taken care of when they are no longer around. Life insurance provides a sense of security, allowing seniors to leave behind a lasting legacy and maintain the financial stability of their family.
Life insurance offers numerous benefits for seniors. One significant advantage is the tax-free death benefit it provides, which can cover various expenses, including funeral costs and outstanding debts. Moreover, life insurance enables seniors to leave a financial legacy for their loved ones, ensuring their future well-being even after they have passed away. It offers a practical solution to safeguard their family's financial needs.
Absolutely, seniors with pre-existing health conditions can still obtain life insurance coverage. While the availability and cost of coverage may vary depending on the specific condition and its severity, there are insurance options specifically designed to accommodate individuals with medical conditions. It is advisable for seniors to consult with experienced advisors who can navigate the options and find suitable coverage based on their unique circumstances.
When selecting a life insurance policy, seniors should consider several key factors. These include their financial goals, budget constraints, coverage needs, and personal circumstances. Factors like the type of coverage (term or whole life insurance), affordability of premiums, desired death benefit amount, and the inclusion of any specific riders or additional features should be carefully evaluated. Seeking guidance from knowledgeable advisors can help seniors make well-informed decisions and choose the most suitable policy that meets their specific needs.
