Information on Single Premium Annuity

2007-03-08 10:33:40

( Insurance )



Single premium annuity has many dimensions; it is a great backbone in retirement. Income never ends even after retirement. It is an immediate and steady income stream after retirement.

Single premium annuity gives you the benefit of sitting at home without working, and at the same time fulfilling your basic needs.

Annuity means a stream of regular payments over a future period of time. This is normally associated with Insurance Companies. Insurance premium tax is one consideration that is used as a promotional by all sellers of annuity.

Life insurance premium financing is a real complex calculation that is best performed by a trained Actuary. Return of premium life insurance is aging linked to life expectancy and the market interest. Return of premium term life insurance is often calculated considering the age and risk profiles of individuals.

Term life insurance premium is often based on fixed terms. In the case of Insurance, the returns are contingent on the happening of certain defined events in future. Annuities are designed to ensure regular future streams of money. These may be monthly, quarterly, half yearly or even annual.

The returns are designed keeping the requirements of the person who opts for the annuity.
In instances where the future income is uncertain, single premium annuity is the answer.

Here the investor makes a single down payment and opts for a regular income in the future.

The insurance companies manage the money in a professional manner and take care of the market risk. Professionalism is maintained to ensure protection over the funds.

The total funds in the Insurance companies runs into a lot of money, and it requires a lot of expertise to efficiently manage the funds.

Efficient fund management systems are what help the companies in keeping their annuity commitments. All Insurance and Annuity companies are subject to stringent controls by the Federal Government.

Today, there are many different insurance companies dealing with various annuities. Proper guidance helps in taking right decisions in choosing the right plan after retirement.


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