MET LIFE ANNUITIES AS RETIREMENT INVESTMENT

2007-04-17 04:46:40

( Insurance )



MET life annuities are type of investment that arrange for the annuitant to receive a stream of money during his lifetime. It is a retirement option that people can avail if they prefer to receive structured settlement when they retire from their jobs. MET life annuities cease its validity upon the death of the annuitant.

Annuities are commonly used as a rider to common insurance products particularly variable life insurance. It offers option for insurance holder to receive regular cash after the annuity term starts to take effect until a specified age or during his lifetime.

The proceeds of MET life annuities can be availed either as lump sum cash over a specified period. Either options benefit the annuitant since he is provided an income from MET life annuities. The income helps him to be self-sufficient and not rely his upkeep to his relatives.

MET life annuities are arranged where the annuitant makes regular payment to the insurance company for a certain period. It is called the investment period for annuities. Annuitant pays of the insurance company the agreed cash that it invests to high earning investment tools.

The introduction of annuities as part of the products of insurance companies increased their market share in the industry of financial intermediation. It consequently increases the sales of the insurance industry. Annuities have become an attractive rider or even as a separate product for insurance companies. Insurance holders prefer reaping the benefits of their life insurance with an additional income provided by the returns of their annuities.

Annuities are considered good investment tool. The earning from annuities is not subject to tax until you decide to withdraw it. Its tax sheltered characteristic makes annuities good substitute for regular savings account. The principal amount you put into the annuity is taxable. The interest it earns, however, is subject to tax once you withdrew or started using the earnings of your annuities.


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