Insurance Annuity

An insurance annuity is a way for individuals to invest money in a tax-deferred account that will be paid out upon their demise. These annuities can take many different forms, such as fixed and variable. It is important for you to understand as much as possible about this type of investment before you actually take part in it. Although there may be many questions that you have, here are some of the more common questions that have been asked in the past. These can help to give you a more rounded view of insurance annuities and what they are able to do for you.

One of the more common types of insurance annuity policies that you may hear about is known as the deferred annuity. With the deferred annuity, you can take the money out at any time, either in part or in bulk. One of the benefits of using this type of annuity is the fact that you will not pay any taxes on the money until you actually withdraw it. At the time of withdrawal, you will need to pay income tax and there may also be penalties if you withdraw the money when you are under the age of 59 1/2. You can also defer the money until a later date whenever it will be regularly given to you as a source of income.

Another choice that needs to be made is whether you're going to choose an insurance annuity that is either variable or fixed. The difference between these two is that a variable policy is going to be invested in a number of different ways and you may see the amount of your investment go up and down, depending on the market and the type of investments that are used. In a fixed policy, you are guaranteed an interest rate, as well as knowing in advance the time when the interest will be added to your account.

There is also a lot of freedom that is available whenever you have an insurance annuity and changes may be made by contacting the insurance company and filling out the proper paperwork. This could include changing beneficiaries, as well as changing the type of payout that is going to be received. Along with that, you may also have options that are available for withdrawing money early from the policy but typically, you will have to pay it back with interest.

Visit http://www.annuitycampus.com for more Annuity and Life Insurance Tips and Tricks.

Call Robert Eldridge directly at 800-643-7544.

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

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