The Advantages of A Flexible Premium Deferred Annuity

People who are looking for insurance solutions and information to help them make informed decisions will benefit from this article, which covers flexible premium deferred annuity Insurance. Annuities can make for really good retirement tools you can use to defer paying taxes on money you don't use; furthermore annuities guarantee an income you will not outlive.

What Is Flexible Premium Deferred Annuity (FPDA)?

Insurance companies sell contracts which have variable premium payments and payments amounts. Premium payments can be monthly, quarterly, semi annually or annually throughout the life of the policy holder, for 2 or more people. It can also be for a predetermined time period.

Flexible premium deferred annuity accepts ongoing small deposits of even $50 per month. The interest rate guarantee period on each deposit is for one year; at the end of the guarantee period the depositor can benefit from competitive renewal rates, which are based on current market conditions.

The Advantages of Flexible Premium Deferred Annuity

- One of the main advantages is that each contract comes with a principal guarantee; this guarantee ensures that a client does not receive any amount which is less than the total premium payment due.

- Each contract has a 9 year surrender charge period and there are a number of ways by which the client can access funds before the 9 year surrender charge period. The distinct advantage to the client is the surrender charge does not have to be paid. At the end of the surrender charge period there is no fixed time period in which the client has to decide upon restarting the surrender charge or discontinuing the annuity.

- As a savings medium flexible premium deferred annuity is an ideal choice for anyone who is looking for flexibility on continuing premium deposits and tax deferred financial growth. It is a very good method by which to enhance retirement savings plans, which can be used to fund your IRAs, SEPs and other plans.

- A truly great advantage of this method is that irrespective of any economic fluctuations the client will never receive anything less than the total premium payment due (minus any loans or withdrawals). This type of annuity comes with a principal guarantee most investment mediums do not offer.

- No surrender charge will be levied for clients who wish to take early retirement provided they have held the annuity for a period of 5 years and reached the age of 59.5 years at the time of surrendering the annuity.

- Flexible premium deferred annuity is a dependable savings option for people who do not wish to take risks with their money for fear of losing a part or all of it.

- Annuities are one of the best methods by which you can provide a steady source of income for yourself after retirement, when the fear of your money running out begins to haunt you.

- With annuities your investments grow tax free - this is probably one of the best benefits for people in the retirement stage of their lives.

- Anyone can contribute any amount to the flexible premium deferred annuity plan as there are no restrictions on investments.

Robert Eldridge holds over a decade of experience as a multiline agent in multiple states and currently serves on the membership council of the National Association of Insurance and Financial Advisors. Robert has the unique blend of in-depth knowledge in the Medical, Life, Annuity and Mortgage industries. He is also a true philanthropist who works extensively to raise money and awareness for the Shriner's Hospital for Children.

Robert's clients value his insight into recognizing optimal solutions to their healthcare and financial needs in this evolving financial market. Staying current with changes in the industry, coupled with his experience and insight into excellent customer service, his philosophy is never selling a product unless it brings an added benefit and true value to you and your family. Please visit http://www.annuitycampus.com for more annuity information.

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.