Buy Annuity Investments: How To Start

2007-03-08 10:33:40

( Financial )



Annuities are a good investment. Annuities can help you save money and can give you regular payouts once the accumulation period has matured. They are usually offered by your insurance company.

Annuities can have fixed, variable or indexed rates. If you buy annuity investments, you have to take a closer look at the exclusions and the rules associated with your purchase. The rules from one insurance company can greatly differ from another. And insurance company annuity offerings also vary from state to state because it is regulated by state law.

Before you buy annuity investments, you have to decide what kind of annuity you want to purchase. Most insurance companies have fixed annuity offerings wherein they impose a fixed rate on your investment. Fixed annuities guarantee you a regular payout after accumulation.

Variable annuities are also offered by a lot of insurance carriers. The value of your annuity investment will then depend on its performance. Most variable annuity offerings even come with death benefits. Regular payments will then be made to your beneficiaries at the time of your death. Some insurance companies have variable annuity offerings wherein they guarantee a minimum interest rate on your investments.

Indexed annuities are between fixed and variable annuities. It is prudent to ask the differences between all three before your purchase.

You can buy annuity investments from your insurance broker or you can personally visit your insurance company. Your payment will be determined by the attending agent. Payment will depend on the type of annuity you want to purchase. Some insurance companies require lump sum payments and some accommodate fixed payments over a period of time. Your insurance agent will also ask you when you intend the payouts to start. The amount you paid and the starting time of the payouts will determine the amount you have to pay when you proceed with your annuity purchase.


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