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Life Insurance Annuity For Peace Of Mind.

Are you at that stage in your life when you need to start planning for retirement, but you don’t know where to start or how to find the insurance products that will help you achieve your long-term goals? Or have you already started planning for your and your family’s future, but you are curious as to what other options are available to you, that will help you maximise and protect your assets? Have you thought about Life insurance annuity? This type of insurance is designed for you and your family's peace of mind.

What is Life Insurance?

Life insurance annuity is an agreement between the policy holder and an insurer, where the insurer will pay an amount of money to the nominated beneficiary or beneficiaries when the insured dies, or acquires a terminal illness outlined in their policy. It really depends, insurance companies write business on a case by case basis.

In return, the policy holder pays a certain amount (usually yearly, but most insurers have different payment plans to suit you) called a premium.

The Benefits of Life Insurance Annuity.

Perhaps the greatest benefit of taking out a life insurance policy is that once you have worked out what is important to you, you can incorporate those factors into your own personalized policy. You can protect your property to a certain extent, and you can even arrange to pay for your estate and funeral costs, which will save so much unwanted and unneeded stress, at a time when your family will not need it.

Did you know that some insurance companies can join your life insurance policy with your pension plan? That might be a better option for you; however different states may have different Annuity rates which may influence your decision.

What Other Options are Available to Me?

Of course there is always more than one option for you when it comes to your retirement and when taking care of your family after your death. Would you like you the choice of getting a guaranteed income, for life? As well as a death benefit for your family? You could do this if you buy Annuity insurance.

Annuity Insurance.

Annuity insurance is a contract between the policy holder (the insured) and the insurance company (the insurer), where money is paid to the insurance company in the beginning (or sometimes over time), in exchange for the value of the policy or income payments, at a later stage. Every type of annuity has two fundamental principles. Firstly, whether the payout is immediate or deferred and secondly, whether the payouts are fixed or variable.

If you die before you annuitize your policy, your beneficiary will receive either the current value of your annuity or the amount you have paid into it, whichever is more. But it is vital to understand that if you have annuitized your policy and then die, your insurance company is left with the balance of your annuity upon your death.

What are the Benefits of Buying an Annuity, rather than an Insurance Policy?

By buying an annuity, your money will continue to grow more rapidly because it is a tax-deferred product. You will gain interest on top of the money that you would have paid in current income taxes. Your premiums will earn interest, as well as the earnings on your premiums will earn interest.

Perhaps the biggest benefit of buying an annuity, is that all of the money you are not paying in taxes, earns you interest! Be sure to research what the Annuity rates are and any penalties for early withdrawals.

Most people buy a life insurance policy on the basis that it offers their family financial support after their death. It is designed to help the nominated beneficiaries financially, after the policy holder dies. This will ensure peace of mind for both the person taking out the policy and their loved ones.