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How To Make Annuity Payments

If you have purchased Annuity insurance, you must make sure that you are fully aware of all of the Terms and Conditions of your chosen plan. You will need to make a payment every so often to maintain the balance of your plan and to ensure that it continues to increase in value. It is pretty standard that, should you fail to keep up with your Annuity payments, you will be penalised by the company managing your Annuity insurance– most often this penalisation will come in the form of a payable fee.

Thus it is very important that you make sure that you have received clear information as to the amounts due and the dates when they will be due by. This is usually sent out together with the rest of the information on your Annuity insurance once you have signed up.

Annuity Calendars and You

You will need to make regular payments to maintain your Annuity insurance, and most insurance companies can offer you assistance in this. They may be able to provide you with what is known as an Annuity calendar, which is essentially a 12 month calendar with the dates and payments required marked on it.

It is important to make sure that you are aware of when your annuity payments will be required as this ensures that you do not receive any unpleasant surprises when opening your mail.

As previously mentioned, an Annuity Calendar is essentially a normal calendar with entries present for all of the days on which you will need to make a payment.

If you are worried you may miss a payment despite having a calendar, it may be an idea to use an electronic diary, such as the one present in Outlook, to set up reminders for this.

This way you will receive a reminder for each payment when the payment is due, and you will then be able to make the payment to your insurance company.

Making an Annuity Payment

But how do you actually make an Annuity payment? Once you have signed a contract and set up an Annuity insurance fund, you will receive an information pack from your insurance company. This should include information as to the various payment methods accepted by the company. It is rare to find an insurance company which will accept a payment made in cash, which leaves us choosing between paying by cheque, credit card, bank transfer, direct debit or internet banking.

Annuity Payment Methods

If paying for your Annuity insurance by cheque, it is advisable to ensure that you have posted the cheque well ahead of time and that it is dated appropriately, as an incorrectly filled cheque can cause some problems which often take a little time to resolve.

Paying by bank transfer is a good method, as it leaves a solid paper trail for your payment should anything go wrong with it. You will, however, most likely need to go into the bank to organise this, as there will be forms to fill out and a signature will be necessary to finalise the payment.

If you have the time to visit your bank and your Annuity payments fall on regular dates every month, you may wish to set up a direct debit into your insurance company’s bank account in order to have the payments process automatically on predetermined days. This can be a very useful payment method however you will need to ensure that there is enough money in your bank account to allow for the payment in order to avoid any costly bank fees.

The easiest method of making your Annuity payments is probably using Internet Banking – this allows you to access your bank accounts anywhere at any time, and there are no forms which will need to be filled out. For many people this is becoming the method of choice for paying for things.

Most insurance companies will accept a credit card payment, however it may not be wise to use a credit card to shoulder the cost of items such as Annuity insurance – this is best dealt with using your normal bank account.