Single Premium Annuities - 2 Types

Single premium annuities are some of the most popular annuities in the world. All annuities will allow a policy owner to at least purchase these programs in one lump sum or rollover amount. A potential policy owner can purchase either an immediate annuity or choose many of the deferred annuities that are on the market.

Single Premium Immediate Annuities

These policies are designed to give the policy owner income. Typically the income usually begins 30 days after the policy issues. Immediate annuities give the owner a variety of income options. You can choose monthly, quarterly, or annual income payments. The policy owner can also choose the length of their payments.

Life Only- (Income for as long as you live)

Life with a period certain- (Example, 10 years plus life)

Single Premium Deferred Annuities

Deferred Annuities are designed for people who do not want to be taxed on money they are not using. These policies will still allow for liquidity should the owner need money and these annuities also allow you to annuitize or take payments similar to immediate plans. The 3 types of single premium deferred annuities are:

Fixed Annuities

Fixed Indexed Annuities

Variable Annuities

Two Phases

There are two phases to deferred annuities. They are the accumulation phase and the distribution phase. During the accumulation phase, your money and interest is growing on a tax-deferred basis which means taxed diminished. Deferred policies are the most popular annuities in the world. The policy owner has many different types of fixed, indexed, and variable annuities to choose from and these policies offer many different riders and terms that are attractive to the public.

All deferred annuities will the owner to take money as income from their annuities, this is called annuitization. Annuities have been around for 100's of years and they all are designed like a pension plan, they pay you an income you can never outlive. Most deferred annuity owners do not plan on taking money from their annuity, however they sleep better knowing that if a financial occasion arises, they can access they account.

Liquidity

Single premium deferred policies are very liquid. Most of these plans allow for interest only withdrawals. Indexed and variable policies allow for penalty free 10% free withdrawals from the contracts each anniversary year. As mentioned before, the policy owner can also choose an income for life and annuitize their annuity contract.

Avoid Probate

All annuities and life insurance policies avoid probate. When the owner(s) pass on, the proceeds will be passed on to the beneficiary(s) and cannot be contested.

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