What is Immediate annuity?

by Annuities April. 14,2023
What is Immediate annuity?

Immediate annuity is a type of annuity insurance. The buyer pays the annuity insurance in one time, with lump-sum money and contribution converted into an ongoing and guaranteed stream of income for certain period of time.

 

Benefits of investing in annuities

 

Guaranteed Income - Annuities are a contract between an investor and an insurance company and are the only investment product that guarantees a lifetime income.


Tax Benefits - Annuities offer the opportunity to expand tax growth, i.e. your funds can double and defer taxes until you are withdrawn or start paying an annuity.


Market Volatility Coverage - Annuities offer several different guarantees that protect against a market downturn and add costs, including growth guarantees, capital protection or guaranteed lifetime income streams, and never decrease


Higher payments - Annuity payments include interest and a portion of the principal and may continue to be paid after your capital is recovered, which is higher than the payment of income and similar investments.

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Competitive prices - you might be able to save money compared to the annuity you currently have.


Value benefits - including the lifetime income and inflation protection option.


Value for money - variable annuities with growth in tax-deferred and exit-free investments.


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High-level insurance companies - Annuities available for purchase are provided by a well-known insurance company with an AA or higher rating.